Bulgaria News

More tips from a Bulgarian mortgage expert

20 November 2006

We always recommend that our clients get a good, communicative Bulgarian solicitor, who can speak English and who has acted for foreigners buying property before. Getting a good solicitor when buying and mortgaging, can be the difference between a relatively painless purchase and long drawn-out one. Be wary of solicitors who do mass work for a particular development or estate agent- they are not truly independent and may have an interest in not rocking the boat over issues that are not in your best interest. A majority of sales agents and developers do refer to truly independent solicitors, but a few don’t, so be aware.

Avoid buying building insurance through international insurance brokers. They can charge up to twice as much as a Bulgarian insurer. Most mortgage providers and estate agents can organise insurance for you directly with a local insurer, and many will not charge a commission. Also be aware of cheap local insurance policies that do not provide the necessary cover or security offered by one from a larger company. Too expensive is no good, but don’t necessarily go for the cheapest option either! Check the level of cover provided and conditions carefully before committing yourself to a policy.

While on the subject of insurance, we highly recommend our clients to take out a life insurance policy. Even though this is mandatory for many mortgages, it should be done in all cases as soon as you sign preliminary contracts. Once you have signed preliminary contracts, you are legally obliged, and failing this obligation can be very costly. A simple life insurance policy, for the cost of a pint of beer a week in many cases, is quick to set up and will protect against unforeseen eventualities. Most people will spend 5 or 10 times that amount to insure their car. However, your life and biggest assets are worth much more!