A Place In The Sun - Buying in Slovak Republic
Question
I am looking to buy a property in Bratislava and want to know who will provide me with a mortgage. Could you please send me contact details of Banks and building societies which covers Slovakia. I am a UK citizen and resident.
Answer
When thinking about mortgages the first thing to think about is not which bank, but which country. Although you won’t be able to mortgage the property in Slovakia using a UK bank it may make sense fro you to re-mortgage your property in the UK and then to use the money to buy the property in Slovakia. This can make sense for some people. The decision as whether to mortgage in the UK or in the country that you are buying (or even a mixture of the two!) will depend on your particular circumstances and therefore you need to speak to a specialist about what you are trying to achieve. Things that need to be considered include what you are going to use the property for (whether it is for rental or personal use), what currency the income that you will use to pay back the mortgage back is in and how long you wish to take the mortgage over. In addition to this, the relative interest rates in the two countries, exchange rates and total costs all come into play when making the decision. Please note that it generally costs more to set up a mortgage abroad than it does in the UK.
Remember that mortgages abroad often work in very different way to the way that they work in the UK. The way that they calculate whether you are eligible is often very different and the loan to value ratios are often different.
On the subject of financial institutions in Slovakia I would recommend that you speak to a specialist mortgage broker who deals with Slovakia rather than just contacting various banks yourself. That way you can make sure that you are going to get the most suitable mortgage. Details of various brokers who deal with international mortgages will appear in the adverts of your favourite magazine “A Place In The Sun”. Alternatively your lawyer should be able to put you in contact with a broker.
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