Finance
The banking system in Cyprus is based upon the British system of banking. It is well developed and equipped with the latest technology such as Internet banking facilities etc.
If your clients require a loan to finance the purchase of your property in Cyprus then there is a good choice of banks to select from.
Interest rates are falling as Cyprus gets closer to adopting the Euro as its currency in early 2007. At present they are lower than the UK and it looks like this trend will continue to align more with interest rates in the Euro Zone.
To arrange a loan with a Cyprus Bank they would normally offer the following at interest rates around 1.5 - 2.5% above LIBOR. The loans are available in foreign currency and can be used to buy a house, an apartment, or an office space in Cyprus.
* The loan is available in any currency of your choice including USD, EURO, Swiss Francs or GBP.
* There is no maximum loan amount. The loan can amount up to 70 % of the forced sale value of the property (according to the official evaluation of an independent valuator).
* The repayment period is typically 10 to 25 years.
* The interest rate will be LIBOR (1,2,3 month) depending on the customer's preference, plus a spread of between 1.5 to 2,5%.
* The loan is granted in the currency of your choice although it is advisable to borrow at the currency of your income so as to avoid any currency exchange risk.
* Competitive interest rates and discounts are offered.
* The purchased property can be offered as security for the loan.
You will need to open bank accounts at a local bank and we are at hand to help your clients do this during their visit. It is a simple procedure and all they need to bring along is their passports and address details.
If they are thinking of arranging a mortgage then it is wise to bring along the following:
- Passport
- Proof of residency, (utility bill)
- Bank statements confirming income
- Banks / Building society statements confirming deposit available
- Bank reference letter
- Information of any existing mortgages or loans
It will also be necessary for the applicant(s) to attend a local interview.
Other documentation will be specific to the builder and the contract of sale, which the solicitor will obtain.
Cypro
12 Campbell Avenue
Barkingside
Ilford
Essex IG6 1EA
URL: www.cypro.co.uk