Interest Rates:
YEN                                           5.40%
SFR                                            5.60%
EURO                                         6.40%
USD                                           6.90%
GBP                                           7.50%

A Range of Interest Rates Indications for Selected Mortgage Products & Terms. Simple not Compound Rates; Not AER or APR: Not regulated by SPK, FSA, ESD, DIFC or SEC. Comparison conventions are not regulated in Turkey, interest rate calculation methods are not standardised, and comparisons may be misleading. Beware cross quotes in one currency with repayments in another, or without disclosure of underlying currency. UK licensed CEMAC and FP certificated advisors may not be subject to FSA regulation in the UK if working for non-regulated firms because overseas mortgages are not regulated in the UK. Before basing your mortgage decision on interest rates alone, consult your independent professional advisor or FSA regulated Independent Financial Advisor. Rates shown subject to status, market conditions, and change without notice. Caveat Emptor. Allah Korusan.

Find better interest rates?
No doubt, you can find a lower interest rate quoted on an “offer in principle” or other quotation for a Turkish mortgage. That’s because there are several methods of calculating interest rates, and none of them are comparable with one another, regulated, or governed by convention. Choosing a mortgage based on the interest rate alone may be very misleading and costly – beware practices designed to ensnare those that “know the price of everything, and the value of nothing…”.

We try to simplify the complexities of mortgage finance, but over- simplification can be misleading, and ultimately we rely on full disclosure of relevant information, because honesty is the best policy –

building
trusted relationships
is building our business….

Copyright 2007-2008
Intelika

Hoş Geldiniz! Welcome to ‘Fast Track’, the newsletter providing key insights into Turkish mortgage finance procedures, documentation, and product features, incorporating “Turkish Property Finance” exclusively for our clients since 2005, and now in public release.

The Turkish Mortgage Experts with first hand experience facilitating cross-border finance in Türkiye since 1982.

One Source for All Turkish Mortgages if you definitely require property finance in Turkey, very simply, the widest choice of solutions available, for your specific circumstances, is via the Turkish Mortgage Centre. Buyrun Efendim…

Found the lifestyle of your dreams? We can help you finance your property purchase. Call us on + 44 (0) 870-770-8022 for a quick-fact finding assessment of the options available, specific requirements, and next steps. When you’ve agreed terms for your new mortgage, it can be held open for as long as 18 months while you are looking for your new property.

Found the property you want? To arrange the most advantageous finance option please contact us before signing contracts or paying a deposit. We can advise you on the contract technicalities required to ensure the mortgage finance can be used to fund your property purchase.

>Next Steps - Web Questionnaire - Mortgage Finance Page

Loan Duration:
1-20 years
Fixed Rate Periods: 1-20 yrs

Loan to Value (LTV):
75% Max
(75%+ neg)

Mortgage Size:
Min Eq. Release:
None Min New: Eu 30,000
Max: Negotiable

Fixed or Variable Rate? Both fixed and variable rate mortgages are available.

Interest Only Mortgages? At present only capital and interest repayment mortgages are available.

Loan to Value (LTV) describes the amount of mortgage loan that can be obtained as a percent of the property’s appraised value. The more documentation an applicant provides to verify financial circumstances, the higher the LTV that applicant may qualify for, subject to status.

Who is Eligible? Currently nationals of Australia, Austria, Belgium, Canada, Eire, France, Greece, Italy, Germany, Luxembourg, Netherlands, Norway, Spain, the UK & USA and several other countries are eligible. Applicants must be over the age of 18, and no loan term may extend beyond their 75th birthday.

Joint Applications are welcome – in specific cases more than two applicants jointly are accepted- the most arranged to date is four.

 

Buying 2 or more properties? The extensive investment & finance network developed by our principals during 25 years arranging foreign investment and finance in Turkey, enables us to negotiate exclusive terms to meet the property investment requirements of high net worth individuals. Please speak to an expert on 0870 770 8022 to learn more.

Financing property in a Turkish Company? In specific cases 80% LTV is achievable- subject to the Company’s financial history, operating track record, and project/assets. For details on commercial, developer, and non-recourse finance, please email us directly at info@TurkishMortgageCentre,com.

Want to raise cash? If you already own a Turkish property and have the title deed (tapu) in your name you can release up to 75% of the appraised value subject to income & status. This is known as Turkish Equity Release. Less stringent status criteria apply to loans below 60% of value. Even raising a small amount to offset against future property expenses may make sense- for example if you estimate your utilities, taxes, and miscellaneous Turkish expenses over the next 7 years are £ 7,000, it may make sense to borrow an equivalent amount in a foreign currency, and put it on deposit in Turkish Lira- Turkish Lira Deposit. That way you pre-fund the Turkish Lira property maintenance expenses, because the difference paid on the loan is significantly less than the interest received on the Deposit. Of course, advice from an Independent Financial Advisor is necessary to advise you, particularly on on exchange rate risks.. We can route your application and assist in documents required to open a Turkish Lira bank account with on-line English internet banking access.

How much can I borrow? ALL mortgage lending is based on the applicant’s capacity to service the principal and interest repayments. Different lenders use different methods to calculate this, usually based on after tax income, reduced by an estimate of living expenses, and regular financial and household commitments.

What proof of income is required? There are no “self-certification mortgages for Turkish property. All applications need to be supported by a minimum requirement of evidence of of income, and assessed on a case by case basis. More detailed proof of income is required for a mortgage product with higher LTV of 75%, than for 60%.

Document Requirements? The documentation varies depending on the source of your income, the country where you are working, and the mortgage products available. Document requirements are simpler for 60% loan- to-value mortgage products than for 75% LTV.

 

Climbing onto the ladder? Getting onto the property ladder in Turkey may be more attractive and affordable than at home. With diligent searching it is still possible to find apartments for Eu 40,000 (approximately £28,000) in some areas. If you have the Eu 10.000 (roughly £ 7,000) to cover the 25% down-payment and EU 3000 to cover transaction costs, you could apply for the minimum mortgage loan of Eu 30,000 (roughly £ 21,000), provided you have Eu 500 (approx £ 350) per month in after-tax disposable income (after all outgoings are deducted) to service the principal and interest repayments, subject to status.

 

The Turkish mortgage system is new and may not operate like the system in your home country.

“Offers in Principle” & “Quotations”
provided without having sight of all required documentation are of limited use – you can achieve the same using a mortgage calculator. This is because the specific documentation available for each applicant’s case will determine which loan products the applicant is eligible for. Likewise, providing one quotation from a choice of several, may not be in the applicant’s best interest, and is a practice typically used for brokers serving a specific lender, which the applicant may not have adequate documentation to qualify for, anyway. Poor product targeting may result in duplication of appraisal fees, and failed applications, thus increasing applicants’ costs and risks. The signed terms of contract offered by the lender(s) are the only reliable point of reference, as far as the applicant’s interests are concerned, and discussing ‘offers in principle’ and “quotations” before contracts, can be misleading– overseas mortgages are not regulated by the Financial Services Authority in the UK.

Processing Services Turkish Mortgage Centre provides an introduction promotion service, routing applications to lenders, facilitating document verification, and supporting underwriting procedures. We provide a platform service in order that overseas property investors, mortgage brokers, developers, and lenders, attain greater confidence, transparency, and comfort in securing finance. During 2007 TMC worked actively with 9 different mortgage lenders, more than 20 brokers and developers, and over 300 mortgage applicants.


 

We Reduce Risk on the sourcing of real estate finance in Turkey, by accessing ALL products from ALL lenders with:
● a simplified cost effective process for standard mortgage applications;
● a fully disclosed service for complex mortgage applications;
● clearing services for UK mortgage brokers;
● advisory services to Turkish mortgage lenders;
● off-plan and instalment finance for developers;
● the widest range of commercial real estate finance available in Turkey, including land share, construction, completion, and non-recourse asset finance.

Pre-Qualifying all mortgage applicants, prior to status confirmation, is performed based upon the general un-verified information an applicant provides on the Question WebForm on the Mortgage Finance page of the Turkish Mortgage Centre website. Applicants that are unlikely to have applications accepted, or are likely to have only a marginal prospect of success, will not be progressed, thus saving applicants’ time and fees if they are unlikely to be successful.

Only by evaluating all available documents that verify an applicants financial circumstances, and applying the result to different lender’s criteria, will it become clearer which mortgage products the applicant is eligible for. The different choices of mortgage product features are then provided to applicants to choose from - the length of the loan, the interest rate, currency, etc etc

Turkish Mortgage Centre does not provide financial advice, is not a mortgage broker, and is not a mortgage lender.

Transaction Management Services provides contracts and transaction terms to ensure the purchaser is protected, and ensure the proper permits and title rights are delivered by the seller to coincide with use of the mortgage facility to complete payment. This ensures that the property can be purchased with mortgage finance. Before signing contracts or paying deposits, it is far better to seek advice from our Transaction Management Services if you want to finance the final completion payment of an off-plan investment with a mortgage.

Turkish Mortgage Centre is the only mortgage finance provider with a one-stop full-service capability to provide customers with seamless in-house transaction management services covering conveyance, legal, banking, tax, cadastral, survey, appraisal, title insurance, ‘representation for service’, etc.

Insurances
Building insurance and earthquake insurance are required for all mortgages. Certain mortgage products also require life insurance.

Off-plan Mortgages? Under specific circumstances it is possible to finance off-plan instalments prior to completion of the construction. A developer offering off plan finance should provide the property purchaser with details of the plan, including the contact details of the lender underwriting the plan. The developer or sales agent must make the necessary arrangements with the loan provider- the purchaser can not make these arrangements or obtain this finance directly with the lender, and independent of the developer. Ask your developer to contact us to make the necessary arrangements.

Final completion payment? If you’ve already signed contracts and made an initial deposit, you may choose to arrange a mortgage to finance the final completion payment. In all cases the seller must evidence that the proper planning permits and title rights are ready for transfer to the purchaser, before the mortgage financed can be used to complete the final payment.

Portfolio Finance Investors seeking optimal solutions combining both Turkish and UK finance solutions are invited to submit their requirements. We cooperate closely with several different independent mortgage finance experts in the UK that employ sophisticated techniques for releasing equity, arranging bridging finance, and restructuring portfolio finance for high net worth portfolio and corporate investors.

The Credit Crunch UK banks are no longer lending as aggressively as they once were, preferring instead to bolster profitability, due to the recent credit crisis. The Base Rate (the interest rate at which the Bank of England lends to UK Banks in the wholesale market) had been declining at the end of 2007, while the retail interest rate at which UK lenders provide mortgage money had actually been increasing for new loans. UK lenders are increasing mortgage arrangement fees as high as £900+. The Turkish mortgage market is new, smaller, growing faster, and has much lower delinquent and non-performing loan ratios than the UK or US mortgage markets.

Credit Ratings Obtaining UK equity release finance will also effect the borrowers UK credit status – a Turkish Mortgage will not necessarily show on a UK credit report.

UK Equity Release Obtaining funds from equity release in the UK, may be simpler and involve less expenses, if the borrower obtains the finance from an existing lender. However if finance is obtained from a new lender, the terms may be similar to those incurred on a Turkish Mortgage.

On the other hand, obtaining Turkish mortgage finance ensures your Turkish property title deeds, permits, and permissions are in acceptable order, as no lender will release mortgage finance otherwise. That’s why all the property contracts and documents receive expert scrutiny by Turkish Mortgage Centre’s in-house Transaction Management Services, which also provides such services for cash buyers. Imagine how disappointed you would be having borrowed money against your home to purchase another property that doesn’t have good title?

The most compelling reason for using Turkish mortgage finance, rather than UK equity release, is not about costs, or credit records– it’s simply a matter of good business sense. Specific risks are mitigated when the mortgage loan liability is secured on the overseas property asset you are purchasing with that loan, rather than secured on your primary home residence. Please consult an FSA regulated Independent Financial Advisor for professional advice.

Please don’t shop us for rates if you are considering using UK equity release on a single residential purchase– please refer to your existing UK lender.

Turkish Mortgage Centre exists for overseas property investors that have decided to utilise mortgage and property related finance in Turkey. If you definitely want Turkish mortgage finance, we will ascertain the likelihood of obtaining the finance, and if the results are positive, we will progress your case and provide you full details of the products you are eligible for.

Turkish Mortgage Centre is the only organisation that sources all cross border Turkish mortgage products for cross border applicants. During 2007 we worked actively with 9 different mortgage lenders.

What does this mean? Very simply, your best chance, of finding the best mortgage available, for your specific circumstances, is via the Turkish Mortgage Centre.

Will you succeed? A statistical sample of applications to Turkish Mortgage Centre reveals startling facts:
●Less than 30% of applicants meet the standard profile allowed by lenders.
●Over 96% of applicants are subsequently evaluated as being desirable customers.

How do we do it?

Partly because we support lenders at a policy level on credit criteria, cross-border documentation, and business process management. And partly because of the way we aggregate applications and negotiate terms- often we are able to initiate lending allocations for specific customer profiles. If you receive a request to Fast Track’ your application it may be because we have secured an allocation appropriate for your specific profile – the allocation is usually limited in size and duration so don’t delay. Your application is supported by our specialised knowledge of cross-border credit document verification, combined with the expert knowledge of Turkish property documentation provided by our Transaction Management Services.

We are unique because of the way in which we aggregate applications with on-line application processing technology, obtaining finance terms that are not generally available.

Once you have received a contractual offer of terms from a lender(s) you are advised to seek advice from a professional independent financial advisor.

Turkish Mortgage Centre does not provide financial advice, is not a mortgage broker, and is not a mortgage lender.

On-Line Application System
Turkish Mortgage Centre operates the only online application processing technology that sets standards for best practice.

After completing the questionnaire on our web page, the applicant is allocated a log in password and username via email.

When the applicant enters their log in details on the Mortgage Application page of the Turkish Mortgage Center website, the on-line application form opens automatically to show the documents and application information required, that have been customised to meet the requirements for that applicant’s specific application.

Applicants may complete the data entry and upload their documents online, pausing and returning as many times as they choose.

When the application is complete in this manner, it will be received by every lender currently providing cross-border mortgages, and the best offers will be returned to the applicant for evaluation, and formal closing.

Use of the On-line application system requires a scanner and broadband access. Applicants that are not computer friendly may be supported in the process by the expert from Turkish Mortgage Centre assigned to their case, or their professional adviser.

Manual Processing
Alternatively applicants may deliver documents via email or post.

Success
Turkish Mortgage Centre recently placed a Eu1,000,000 tranche of particularly challenging non-standard applications for 8 properties in Turkey. Some of the applicants were purchasing more than one property, all applicants had non-standard sources of income, and two were secured with non-standard techniques. TMC’s on-line application system presented the applications to nine different lenders, and within 10 days of receipt all the applications had been acquired by lenders for underwriting.

Local Knowledge
Mortgage lending in Turkey is new and the lending policies and procedures are not well established. An extensive knowledge of local Turkish property documentation, and local lenders policies and procedures, is imperative for successful mortgage placement. With over 25 years of financing experience in northern Europe and Turkey, this level of value added expertise is only available at the Turkish Mortgage Centre.

One Source for All Turkish Mortgages if you definitely require property finance in Turkey, very simply, the widest choice of solutions available, for your specific circumstances, is via the Turkish Mortgage Centre.

This document is for the named individual's, entity's or partnership's use only for the purposes expressed and may contain confidential proprietary or legally privileged Information or otherwise be protected by other legal rules. No confidentiality or privilege is waived or lost by any mis-transmission. Any review, re-transmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. You must not, directly or indirectly, use, disclose, distribute, print or copy any part of this message if you are not the intended recipient. Emails are not secure and cannot be guaranteed to be error free. They can be intercepted, amended, lost or destroyed or contain viruses. Turkish Mortgage Centre, personnel, associates, and affiliates, do not make any representation or warranty as to the accuracy of any communications made by us by email nor endorse any such communications. Anyone who communicates with us by email is taken to have read and understood the content of this disclaimer and to have accepted the risks identified herein.

The information contained herein is confidential and set out as a general outline of the services and fee structures contemplated. All descriptions, references to terms and conditions, and other details are given in good faith, or provided to Bodrum Kapital (Turkish Mortgage Centre) in good faith, or have been gathered by Bodrum Kapital in good faith, or are believed to have been derived from reputable and reliable sources. All opinions and judgements, plus all forecasts and projections contained in this document are necessarily of a subjective nature, and subject to uncertainty. The analysis of services and fees is based on sources believed to be correct and reliable and represents the opinion of Bodrum Kapital (Turkish Mortgage Centre) as of the date of transmission of this document. None of the sources quoted or relied upon assume any responsibility for any direct or indirect damage or loss suffered due to reliance on these projections. Unless expressly stated, any valuations or pricing contained in or attached to this message are indicative only, are subject to change, do not constitute an offer to deal at the valuation or price quoted and do not constitute investment advice.

The enclosed information is considered confidential and no party may disclose the details of the proposed transaction or that a transaction is being contemplated. The potential investor or any related party, affiliate, or advisor is kindly asked NOT to discuss the proposed transaction with the counterparties to the transaction or third parties without the express written permission of Turkish Mortgage Centre. The information contained herein, including any part thereof, may not be reproduced or quoted to third parties outside the entity of the intended recipient without the prior written permission of Turkish Mortgage Centre and the sources quoted or expressly relied upon herein. Copyright Turkish Mortgage Centre 2007, 2008.