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Bulgaria Mortgages, mortgages in Bulgaria

Information from the online mortgage information and application processing system, lenders can be only found by visiting banks directly at present.

The maximum term available is 25 years or up to age 70, these loans are available in Euros only.

Your loan is based on your joint net "take home" pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit card payments (if the balance is not cleared on a monthly basis) and any maintenance payments together with your proposed Bulgarian mortgage payments must not exceed 35% of your net monthly income. 

Example: Net joint monthly income £2,500 X 35% of that figure is £875 minus existing monthly mortgage payment £300 - No other liabilities. This leaves a balance of £575 for a proposed Bulgarian Mortgage payment.

Please ensure that you have full title to the property on completion and that the appropriate documents are available for the lender. Finance will be granted only for completed apartments where the State Acceptance Commission has issued a valid “Use Permission Certificate”. We link you here to Bulgarian Property Information which we hope will be of use to you.

In Bulgaria, although a foreign legal entity (Ltd, joint stock company etc) is entitled to own titles of land, a foreign person is not. However, a foreign person may have full rights on an edifice, as he/she may own title of an edifice without owning the underlying land. In brief this means that of you are buying a house, villa, townhouse, farmhouse etc in Bulgaria where land is included you will need to set up a Bulgarian Limited Company for the purchase to be transacted through.

It is essential that you take the appropriate legal advice before signing a preliminary purchase agreement or paying a deposit, as if purchasing in your own country. You may choose to use the lender’s solicitor in Bulgaria for your own representative also. If this is the case, you will need to specify this in the mortgage application. Your relationship with the solicitor will be totally separate from that of the lender and the solicitor. We are always happy to recommend a suitable English speaking Bulgarian Solicitor to take you through this process, please make mention of this in the notes section of your mortgage enquiry.

If applying for a loan to a Bulgarian Company of which you are the beneficial owner, you will be required to guarantee the loan. The Lender will expect you to receive independent legal advice from a solicitor in the UK concerning the guarantee and confirmation from the solicitors that they have indeed advised you independently (both documents incorporated within the Guarantee). 

Please be aware that the Lawyer/Notary may be incorporating, within his charges, costs for assigning the mortgage and you should establish with the Lawyer/Notary the actual cost before proceeding with the loan application.

The completion of a Bulgarian mortgage takes place in front of an appointed Bulgarian Notary and all representatives of the parties to the mortgage need to be present. A power of attorney will need to be presented to the lender in good time before completion – a draft document will be provided by the lender.

Please bear in mind that if you are intending to be present at the completion to sign all the relevant documents and you do not understand the Bulgarian language, a translator will be required to respond to the Notary. The translator will also be required to sign the notary deed.

Please note it is advisable to arrange your mortgage finance well before agreeing to purchase a property, properties can be purchased either individually, in joint names or in the name of a company depending on if land is included.

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