Author Topic: Mortgage worries (Read 4320 times)

Wendy · « **on:** February 12, 2009, 08:36:51 PM »

Garanti bank have said we can have a mortgage of Ãƒâ€šÃ‚Â£120,000 over 15 years. Ãƒâ€šÃ‚Â£1500 a month. The total amount repayable amounts to Ãƒâ€šÃ‚Â£278,371.80 plus it appears they want to charge Ãƒâ€šÃ‚Â£3375 fees!!!!

Can anybody out there recommend somewhere in the UK where we can get a mortgage at a better rate??

Cheers
Wendy

Linkback: https://www.enjoykalkan.com/forum/index.php?topic=2893.0

Enjoy Kalkan · « **Reply #1 on:** February 12, 2009, 08:40:27 PM »

Before i get my calculator out whats the APR?

I know many people prefer to pull the equity out of their UK property as this is generally cheaper - have you considered this?

alantj · « **Reply #2 on:** February 12, 2009, 08:55:51 PM »

Wendy

That sounds pretty outrageous but not sure you will find anything much better. We looked at mortgaging our villa in Kalkan in 2007 but couldn''t find a reasonable deal (interest too high, lots of charges and very low valuations were the norm).

In the end after exploring the market with 3 or 4 companies we couldn''t make the numbers add up and decided not to proceed. As John says even in the current market the UK, if its an option, would be cheaper.

Regards

Alan

Enjoy Kalkan · « **Reply #3 on:** February 12, 2009, 09:02:50 PM »

Obviously im not aware of your personal circumstances but another option, if your looking to rent out would be to register as a business and look at business loans with personal indemnities - whilst this may not be the cheapest option it may allow you to secure more borrowing than you would be able to as a personal customer as you could use the equity in your UK home as a guarantee without equity releasing

Just a suggestion

PS - THIS IS NOT FINANCIAL ADVICE

Wendy · « **Reply #4 on:** February 12, 2009, 09:07:06 PM »

Hi Jon,
We don''t have any mortgage at the moment. Can you explain what you said in terms that I can understand please?! I know it''s not financial advice.
Wendy

misty · « **Reply #5 on:** February 12, 2009, 09:44:25 PM »

Wendy that''s outrageous.....if you happy to pay that rate I''ll lend you money minus the fee''s

Wendy · « **Reply #6 on:** February 12, 2009, 09:54:13 PM »

Misty - I''d sooner pay you than the bank!!

kim21 · « **Reply #7 on:** February 12, 2009, 10:04:52 PM »

hey Wendy,
Why would you take out a mortgage in Turkey with their high interest rates when you can get one in the uk with far lower interest rates.

Hi alantj,
Low valuations from the bank were the norm?
How can the bank get property valuations wrong I don''t think it''s the bank who''s got the values wrong
sorry

rat2 · « **Reply #8 on:** February 13, 2009, 10:38:06 AM »

I don''t think it''s possible to get a UK mortgage for a Turkish property - if it is I would like to know.
If you''re in a position to do so, re-mortgaging a UK property is probably a better option than a 12.5% APR (or thereabouts) Turkish mortgage based on the actual value of the property.
With all due respect, Jon''s option sounds like a dodgy path. Turkey is starting to look closer at people who start Turkish companies for reasons other than genuine trading, investment in Turkey and employing local Turks (e.g. property purchase in rural areas).
As the authorities become increasingly computerised, expect more stringent controls and enforcement of existing legislation.

Enjoy Kalkan · « **Reply #9 on:** February 13, 2009, 03:38:52 PM »

Hi,

Just to clarify I was meaning to set up a UK company

rat2 · « **Reply #10 on:** February 13, 2009, 04:49:29 PM »

Sorry Jon, my mistake.

Pete · « **Reply #11 on:** February 13, 2009, 05:33:19 PM »

But then you will have to:-
1) File Annual Accounts
2) The Managing Director (probably you) will have to be a PAYE employee. So to get your money out you may well end up paying National Insurance contributions on it.
3) You will not be able to offset interest payments against income.
4) You will liable for UK Corporation Tax on all Profits.
5) If you take out all income as salary so you don''t have any profit left, then you will still have to pay personal PAYE tax.
6) If you sell the property at some point in the future and hopefully make a profit on it, you will pay UK Capital Gains Tax.

Its not as simple as it seems. Seek professional guidance.

Lorretta · « **Reply #12 on:** February 13, 2009, 06:03:45 PM »

Hi we got a mortgage with a UK bank expressly for the purpose of buying our property in Turkey. That was back in 2002 so don''t know if the situation has changed since then.

misty · « **Reply #13 on:** February 13, 2009, 06:36:26 PM »

Didn''t the laws change to prevent money laundering

Wendy · « **Reply #14 on:** February 13, 2009, 08:07:30 PM »

www.OverseasMortgagesDirect.com

I found this site and had a chat with a lovely bloke from Ireland. He can get us a mortgage on our UK property - which is mortgage free - for about 2.5% It''s certainly a more attractive proposition!

I have yet to forward it all to our financial advisor, there was another nice chappie that I spoke to also, but I think we can get a better deal.

I must say though that Lea has been brilliant throughout and has worked so hard on our behalf.

I must also thank you all for your help and advice.

xx

misty · « **Reply #15 on:** February 13, 2009, 08:19:10 PM »

That''s my Ãƒâ€šÃ‚Â£158k profit out the window then.............

Author Topic: Mortgage worries (Read 4320 times)

Sponsored Links

Search Kalkan Forum

Your Account Information

Sponsored Links

Official Turkish E-Visa Application

Connect to Kalkan on Facebook & Twitter

Kalkan Weather

Recent Posts From Our Forum

Random photos from our Kalkan Photo Gallery