Bulgaria News

More expert Bulgarian mortgage advice

20 December 2006

Once you’ve found a property you want to buy, it’s a good idea to let the estate agent, developer or vendor know that you will be taking out a mortgage. Inform them that this process can take up to 12 weeks. In most cases, when the mortgage takes longer to come through, it is because the bank or broker has difficulty getting the required documentation from the vendor. Alerting them early gives you the opportunity to make them aware of the documentation they will need to provide. If they know you are using a mortgage when you sign the preliminary sales contract, they will have no choice but to support the application. This can save a lot of time and angst later.

Don’t rely on the bank to value your purchase at the purchase price. There are two distinct markets in Bulgaria- one for foreigners and one for locals. The market for foreigners is, naturally, more expensive (and this is the reason that Bulgarians do not have holiday homes on the front line at Sunny Beach!) But still, Bulgarian banks can sometimes value with a mind to the Bulgarian market, even though they are selling international mortgages. This does not happen often, but if it happens to you, you might need to come up with a few thousand pounds, and fast!

Finally, remember that things work differently in Bulgaria. This is a country still pulling itself out of a long, chequered past. It is going through a period of massive change in a very short period of time, but it still has a long way to go. In the UK we have the most advanced mortgage market in the world. Bulgaria’s banking system is about 20 years behind and it is reflected in the products and level of service provided by many banks. They are all getting better, but it is still a world away from what most of us are used to.