Welcome to Turkish Mortgages PLUS|||| Frequently Asked Questions |||| Great Value Mortgages for Turkey

What are the interest rates?
Interest rates vary from lender to lender and each lender has several products. A breakdown of interest rates can be found by clicking here. We do not provide just one product from one lender. Our close ties to Turkey ensure we have access to a range of lenders in Turkey and a range of products. This enables us to offer you the best interest rates and terms for Turkish mortgages.
Do I have to prove the income I have?
Every lender in Turkey requires income to be officially documented. This is done by providing the following:
If you are employed:
- Last three payslips;
- Latest P60;
- Sometimes - an employer's reference.
If you are self-employed, providing two of the following:
- Last two years accounts;
- Last two years tax returns;
- Letter from your account confirming net profits for two years.
What if I am retired?
Retired applicants do qualify - simply providing a letter proving your income is sufficient.
What other documents are required?
In all cases the following additional documents will be requested:
- Proof of ID;
- Last three bank statements proving income; and sometimes:
- Your up to date credit report (obtained for free from www.creditexpert.co.uk);
- Sometimes - your proof of deposit (a bank statement showing the funds to be used for the deposit or equivelant);
How much can I afford to borrow?
Simply click here for our calculator. By inputting your income, the calculator gives you a rough estimate of the loan amount you can achieve. However for a detailed expert opinion, please complete our pre application form by clicking here.
Can I buy with a partner and combine our incomes?
If the individual is your "legal" partner (i.e. Wife, Husband, Girlfriend, Boyfriend etc) and you live at the same address, then yes. If you are siblings or friends then no. You will be considered to be seperate applicants for the loan and must each justify that you can independently support the loan and your existing commitments.
What will I need from the seller?
The seller will need to prove they are the owner of the property and that the property has been built in accordance with planning and council regulations. These are done with the following documents:
- The Tapu (the Turkish word for Title deeds)
- The Iskan (translated as habitation certificate).
- You will also need to provide a copy of the sales contract (preliminary or signed).
Bank valuation versus purchase price.
If you are applying for and relying upon a maximum of 70% lending, it is important to realise that most lenders will lend you 70% of whichever is lower. This means that if the bank’s surveyor estimates the value of the property to be less than what you are paying for it, you will have a short fall in funds. If you are relying on maximum lending then you should be prepared for this risk.
Can any fees be added to the loan?
You cannot add any of the fees to the loan amount. Requesting an illustration gives you an indication of the mortgage related fees and when they will fall due.
Will a solicitor be required?
Most lenders require you to appoint a solicitor to carry out the conveyancing and completion matters for you although some do not insist on this. We also strongly recommend that you appoint a solicitor for the conveyancing and to assist you with your negotiations with the seller. A solicitor can also ensure that the contract you sign is viable and that your transaction goes smoothly. We recommend a group of solicitors, details are available on request.
How long will the mortgage take?
It usually takes around four - six weeks to obtain a full offer from the lender from the date we obtain the full documentation from the applicants and the seller. This is dependent on you providing the documents we need in good time. We recommend that you apply 2-3 months in advance - allow even more time if you have not yet received your military clearance (more about this below).
How do I make a full application?
If you wish to apply, you first need to complete our pre application form by clicking here. Once we know your financial circumstances and needs, we will be able to provide you with full advice and a recommendation on the best product for you.
How do I complete the purchase with a mortgage?
You will usually need to visit Turkey for completion matters. However if you are unable to do so, please let us know. We can provide you with advice on how to appoint a power of attorney in Turkey. The Power of Attorney can complete with your explicit instructions and drawdown the mortgage to pay to the seller.
Can I book or reserve an interest rate to avoid any increases before the application is being made?
With some products, yes you can. Rates are revised monthly and the deadline for rates changes regularly. Please ask your advisor when the deadline for the illustrated rate is. Our advice is to apply early and provide your documentation to us as soon as possible. We can make a full application online so scanned documentation will speed up your application and ensure we can book the rate.
What is military clearance and why do I have to have it?
Non Turkish nationals purchasing a property in Turkey must apply for military clearance. This is permission from the Turkish department of defence to allow you to purchase the property. This is carried out because some property is protected by law in accordance with military and internal security procedures. The application is usually done by your seller or solicitor. If your solicitor is instructed to carry this out, there is usually a fee for this.
Currency fluctuations
You should note that some mortgages are onlly available in Euros only. If you have agreed your price in Sterling you should be aware that currency fluctuations can cause the final Sterling equivalent of your loan lower than originally applied for. Likewise it can be more. You should be aware that if there is a shortfall due to this, you will need to make this shortfall up from your own funds. The best way to avoid such a scenario is to either:
- Agree the purchase in Euros; OR
- Having agreed the purchase price in Sterling, fix the final balance in Euros with your seller.
How do I repay the mortgage each month?
You can do this by standing order from your bank account in the UK to the lender in Turkey. Alternatively (and in some cases compulsory), you can set up an account with Moneycorp. There is no charge for this. Moneycorp will debit the Sterling equivelant each month and convert into the currency before sending it to Turkey. Unlike your UK Bank, Moneycorp will not charge you a fee for doing this.
What are the rules regarding Residency - do I have to be British?
No, we can pretty much secure a mortgage for any national in the world, including the Americas, Australasia, UAE, Qatar to name a few. Please contact us for advice on your specific needs.
Do I have to be a Turkish Resident or have any Turkish Ties?
Not at all. See above.
Would you give an opinion on the value of the property I am buying?
No - our expertise is mortgages for Turkey, we don't keep records of property valuations in specific areas. We can arrange for an independent survey of your property if you would like an impartial opinion on the property you are buying.
What Insurance will I need?
You will of course need buildings insurance. You will also need a special type of Earthquake insurance called DASK. In some cases you will also need life assurance (depending on the lender). We arrange these all on your behalf as part of the mortgage service.
I bought my property some time ago - can I remortgage / release equity?
This is possible - please see our rates page here.
Can I included projected rental income from the Turkish property?
No - there are no lenders that take this into account when calculating your affordability. The only time it is taken into account is when your affordability is borderline. In this case, the lender will approve your mortgage if your intention is to rent it out but will decline it if you do not intend to rent it out. UK rental income is taken into account when calculating affordability.
How long will the mortgage offer be valid for?
Depending on the lender - 4 weeks to 4 months.
I complete in 12 months, can I get a mortgage now?
No. This is technically an off plan mortgage. There are no lenders offering off plan or stage payment type mortgages, yet anyway.
Our fee
Turkish Mortgages PLUS charges a fee for arranging the mortgage. Our advice and recommendation service as well as obtaining an agreement in principle is provided free of charge. Our fees vary from product to product based on the commission we are paid by the lender.
We believe that our fee is the most reasonable currently available and provides excellent value for money. We also provide a refund if we are not able to obtain the mortgage in question - please see our terms of business for full details. If you can find a genuine like for like quotation that is better than ours, please let us know and we will be happy to match it.
And Finally...
Please note this section is very generic and may not be specific to your circumstances. If you are relying on a mortgage for your Turkish Purchase, then please consult with us first before committing to your purchase. Remember our advice and recommendation is free and we are also happy to apply for an agreement in principle for you at no cost. The documentation list in this section is also generic and lenders tend to ask for additional documentation from you. Please do not rely on the above as a definitive guide to making and preparing your application - we will give you a specific list of documents needed when you decide to make a full application.