Introduction

Hillsands Limited work with most of the independent high street banks in Cyprus and can assist in introducing our customers to the key contacts within the local branch.

Most of the leading banks in Cyprus offer repayment mortgages based on the currencies of the Cyprus Pound (CYP), Euro (EUR) and Swiss Franc (CHF).

Duration

The maximum term of the loan is currently based on 20 years. This is on the basis that the purchaser’s age and that the duration of the loan does not exceed a total of 65 years.

Purchasers Contribution

At least 30% of the property purchase price.

Interest

The interest is fluctuating – Base rate is based on the current rate of 5.25% (May 2005). Plus a margin of 2.5%

Repayment

Repayment are made in monthly instalments in the currency of the loan. (CYP).

Bank Charges

Most of the bank charges are based on 1% of the loan amount.

Cyprus Government Charges

·         Mortgage fees : 1% of the total mortgage amount
·         Mortgage Stamp Duty:0.15% of the mortgage amount up CYP100,000. 0.20% of the mortgage amount
          over CYP100,000.
·         Valuation Fees : Are always paid directly to the valuers.
·         Interest capitalization every 6 months.

Security

All the banks will require security for the loan.
·         Assignment of life, fire and earthquake insurance.
·         Personal guarantees may be required if considered necessary.
·         Assignment of contract of sale.
·         Mortgage on the property of the value equal to 120% of the loan amount or a bank guarantee.

Requirements for Mortgage application.

·         Copy of your passports (Husband and Wife)
·         Statement of Assets and liabilities ( This form is normally provided by the bank)
·         Bank reference letter from your UK bank.
·         In the case of existing loans in the UK, detailed statements for the last 6 months.

Copies of pay slips or income statements (P60) for both Husband and wife for the last 3 months. Self employed people must also provide further information for proof of earnings. Tax returns and company accounts information are generally required.

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