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Below you will find some of the advantageous mortgage packages that several banks in Bulgaria provide:
In order to help clients Perfect Choice RU is providing information for the best mortgages for foreigners to buy property in Bulgaria.
At the moment we are working with United Bulgarian Bank (UBB), Piraeus Bank and First Investment Bank. |
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Below are the advantageous mortgage packages:
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The bank is Established in 1992 through the merger of 22 Bulgarian regional commercial banks, the first and most comprehensive consolidation project in the Bulgarian banking sector. |
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 An offer for Mortgage Loans for Foreign Citizens through United Bulgarian Bank |
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Purpose |
Purchase |
Target customers |
Individuals EU , USA and Canada citizens |
Dealer |
Bank branches |
Currency |
EUR |
Self-financing |
40% |
Minimum loan amount |
7.500 EUR |
Maximum loan amount |
150.000 EUR |
Maximum loan term |
15 years |
Age limit |
23 years minimum
65 years maximum at the end of loan term |
Interest rate |
1,5% for the first year
7,95% standard interest |
Loan management fees |
Single commission of 1% at granting; 0,5% annually of the rest of the Principal |
Collateral |
Mortgage of the property to be purchased
Insurance of the property, covered by the bank |
Insurances |
Life insurance of the borrower, covered by the borrower |
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ARRANGEMENT FEE - 500 pounds |
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An offer for Mortgage Loans for Foreign Citizens through Piraeus Bank |
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Purpose |
Purchase of Bulgarian residential property;
Re-mortgage of Bulgarian residential property; |
Target customers |
UK and Irish residents;
Ex-pats living/working overseas who have a UK bank account/credit history |
Dealer |
Bank branches |
Currency |
EUR |
Self-financing |
30% |
Minimum loan amount |
40 000 EUR |
Maximum loan amount |
Loans of up to 75% LTV on residential property (for loans over ˆ100,000), 70% (which still applies for loans < ˆ100,000)
No maximum loan amount;
Loans denominated in Euro |
Maximum loan term |
5-25 years |
Age limit |
21 years minimum
70 years maximum at the end of loan term |
Interest rate |
Lower interest rates - typically 5.95%
20% of rental income may be taken into account when assessing affordability |
Loan management fees |
Arrangement fee in amount of 1% |
Collateral |
Mortgage of the property to be purchased |
Insurances |
Insurance of the property /fire, flood, earthquake/ |
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Key features of the service:
 Quick decision in principle, on receipt of the completed questionnaire *
Loan secured by a first charge on Bulgarian property
Bilingual staff |
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ARRANGEMENT FEE - 500 pounds |
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An offer for Mortgage Loans for Foreign Citizens through First Investment Bank |
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Loan applicant |
Any local or foreign natural person, possessing (in cases of purchasing of regulated plot of land or an ideal part of integrated plot of land, part of a real estate, the foreign natural person shall be owner of a local company, which shall acquire the real estate) |
Maximum amount |
Unlimited |
Loan currency |
BGN, EUR, USD |
Maximum repayment period |
240 months |
Loan purpose |
Purchase of a real estate |
Grace period |
up to 6 months |
Percentage of the amount, covered by the loan |
up to 80% of the market value of the real estate
up to 70% of the market value of the real estate, having Act 15 |
Collateral |
- Mortgage of the real estate, subject of the purchase deal or other real estate |
Annual interest rate |
5.99% (BIR/EURIBOR/LIBOR+add-on) for the first year of the loan period
from 8% (BIR/EURIBOR/LIBOR+add-on) in cases of financing of up to 70% of the market value
from 9.5% (BIR/EURIBOR/LIBOR+add-on) in cases of financing from 70 to 80% of the market value |
Penalty interest rate in case of default event |
the interest rate agreed + 20 % |
Drawdown |
in accordance with the drawdown plan |
Repayment scheme |
equal monthly instalments after expiration of the grace |
Fee for preliminary documents approval |
50 EUR |
Single management commission |
2 % |
Commission for pre-term repayment |
2 % / 5 % |
Commitment commission |
0.5 % |
Renegotiation commission |
1.5 % |
Life Insurance - an option |
paid by the Borrower |
Real estate insurance |
paid by the Bank |
Incomes of the Loan applicant |
1.50 of the monthly installment due |
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Documents, needed for certifying the incomes of the Loan applicant/Co-Loan applicant:
Documents, provided by the employer of the Loan applicant/Co-Loan applicant
1. Letter from the employer/employers, certifying the professional qualification, length of service and the annual net income of the Loan applicant/Co-Loan applicant
2. Bank reference, issued by the main servicing bank (recommended)
If the Loan applicant/Co-Loan applicant is not employed under a labor contract:
1. Copy of a letter, issued by certified accountant
2. Bank reference, issued by the main servicing bank
Income, received under lease agreement:
1. Bank reference, certifying the income
2. Lease agreement (recommended)
ARRANGEMENT FEE - 500 pounds
The documents you will need to submit vary from lender to lender, but as a rule, you will have to supply at least the following:
- Copy of passport and proof of permanent address
- Certificate of marital status (wedding or divorce certificate) if applicable
- Bank statements from the last 6 months
- Pay slips from the last 3 months and a referral letter from your employer
- Referral letter from your bank
- Two most recent P 60 tax declarations
Self-employed applicants will also be required to supply copies of their most recent tax return.
Documents will need to be legalized according to your country’s official procedure.
The property documents required are as follows:
- Title deeds
- Preliminary contract
- Document showing the taxation value of the property
- Certificate showing the property is free of any encumbrances
Additional documents may be required, depending on the lender you choose.
Our Charges
Apart from the charges indicated by each lender, Perfect Choice RU will charge you 260 Euro (£175) which will cover all your legal, administration and document fees in Bulgaria. There will also be a government tax of around 150 Euros (£100) payable to a Notary upon signing the mortgage agreement. |
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Our fee is payable when your application is submitted. If the application is refused, or you change your mind, we reserve the right to withhold 110 Euros (£74) as an inconvenience fee.
For more information, please contact us. |
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