The deal, completed earlier this week with a leading bank, is available exclusively through Barrasford and Bird on all properties built by Dinevi & Co.
The deal will open up the market to the many UK buyers who previously wanted to invest in buy to let properties but were restricted by lack of funding. There was previously only one mortgage product available in Bulgaria, which was based entirely on annual income and featured fairly restrictive terms. Unlike that mortgage, the new product is based solely on the value of the Bulgarian property and its rental potential.
Furthermore the new mortgage is unique as it is available on all off plan properties. Purchasers make the first payment of 34 per cent and the bank will mortgage the rest. The previous mortgage only pays on completed residential properties, which, given that payments to the developer in Bulgaria are made in several stages over the period the property is being built, has been unhelpful.
The new mortgage has an interest rate of seven per cent variable, 0.5 per cent cheaper than the current variable rate. The loan value available is from 30 per cent to 70 per cent, with a maximum loan value of ?200,000. All mortgages are full repayment types and the loan period is between a minimum of five and a maximum of 20 years.
Barrasford and Bird will act as a broker between customers and the bank, running credit checks through Experian, requesting bank statements and other proof of earnings as standard documentation like UK mortgages.
Robin Barrasford, managing director of Barrasford and Bird comments: “This is an exciting time for UK investors wanting to capitalise on the Bulgaria property market. Our pioneering position has enabled us to secure this exclusive deal with a leading bank, and for the first time we are able to offer mortgages to hungry investors who have previously not had the opportunity to get on to the overseas property ladder. This exclusive move reinforces Barrasford and Bird’s position as the number one UK real estate agent in Bulgaria.
Barrasford & Bird is based in Launceston, Cornwall and currently has seven offices - five in Bulgaria and two in the UK, employing a total of 30 staff. Founded by Robin Barrasford and Alan Bird in 2003 the company sells property in Pamporovo, Sunny Beach, St Vlas and Sofia in Bulgaria and Bodrum in Turkey. The continued growth and stability of both the Bulgarian and Turkish property markets has led the company to embark on further expansion plans for 2005 and beyond.
For further information please contact Barrasford & Bird on 0845 600 1871 or alternatively visit www.barrasfordandbird.co.uk.