Guide to Greek Mortgages

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Greece Overview

Greece mortgages guide

Greece is a country in the south east of Europe, bringing up the southern end of the Balkan Peninsula. Greece shares borders with Turkey, Bulgaria, Albania and part of the former Yugoslavia. Greece is a maritime environment, with the Aegean and Ionian sea to the east and west respectively. Greece has an ancient and fascinating culture, a diverse history and population, a very attractive climate and property market, and beautiful scenery.

Greece, thought by many to be the birthplace of modern civilisation, has something to offer to everyone. There are a number of islands which are part of Greece, including:

Guide to Greek Mortgages

When it comes to taking out a mortgage in Greece , loans are again available only in Euros. The minimum loan amount in Greece is 35,000 Euros, and there is no maximum loan amount stipulated. When it comes to loan terms, there is no minimum term of lending, but the maximum loan term is 25 years. The maximum age limit on mortgages is 70 years old.

Banks in Greece charge a 1 per cent arrangement fee. Loans in Greece are available on a repayment basis only, although lenders offer 2 years interest only followed by a reversion to repayments. Greek mortgages generally do not charge for total or partial early repayment. In Greece, borrowers can take out a mortgage to buy property, improve their house, or purchase land.

Maximum loan to value in Greece is 80 per cent of the purchase price or value, depending on which is lower. When it comes to legal fees and valuation, the buyer must pay for all. Loans are also only provided to borrowers who can fully prove status – income and outgoings.

In order to take out a self-build mortgage in Greece , borrowers have to start the build from their own funds. Afterward, funds may be released as per the request of the builders, providing a satisfactory valuation has been carried out. Each valuation report costs approximately 100 Euros. The level that will be released at each stage depends on the bank and the build programme.

How much can I borrow on a Greek mortgage, and what proof of income is required?

There are no non-status/ self-certification mortgage facilities available in Greece , however renting out your property is permitted, therefore all loans need to be supported by a minimum of proof of income. If you are employed, you will need to produce your last three months payslips, P60/employers reference and your last 6 months Personal bank statements. If you are self-employed you will need copies of your Audited Accounts together with you last 12 months business and 6 months personal bank statements.

Greek Lenders will not take into account any proposed rental income from the property that you wish to buy. Your loan will be based on your personal (or joint) 'net' pay, and is calculated on an affordability basis. For you to be considered by the lenders in Greece your total outgoings must not exceed 35% of your net monthly income.

A simple example; If your total net monthly income is £1,000, your total out-goings must not exceed £350, you must have £650 per month to be put towards the mortgage repayments to be eligible.