1. Find out how much you are eligible to borrow by completing our quotation request form.
2. Instruct Baydonhill International Mortgages to obtain an ‘Agreement in Principle ’ on your behalf
3. Go to Bulgaria and find a suitable property
4. While in Bulgaria, sign a sales agreement known as the ‘preliminary contract’.  This must be in Bulgarian or Bulgarian and English. A contract solely in English is not acceptable.
5. Transfer the deposit with Baydonhill Foreign Exchange to secure the property
6. Submit a copy of the preliminary contract to the lender with full application form and other required documents.
7. Lender instructs valuation, if required
8. Lender issues a mortgage offer
9. Arrange buildings insurance.  This can be provided by Baydonhill Insurance
10. Transfer balance with Baydonhill Foreign Exchange
11. Arrange monthly mortgage payments with Baydonhill International Payment Plan
12. Completion

Loans are available for residential and commercial properties and developments and applications can be made in the name of individuals or Bulgarian limited companies. Please note that foreigners are not currently permitted to own land in Bulgaria and it is therefore necessary for applicants to set up a Bulgarian Ltd company.

Mortgages can be in Euros, Lev or US Dollars and the lender will take a first charge over the Bulgarian property.

Mortgages are generally at a bank variable or Euribor linked rate.  However, one lender is offering a short term fixed rate. Interest only options are also available.

The maximum loan to value available is 70% of the bank approved value of the property.   A maximum of four applicants per mortgage can be accepted. Married couples should apply together as one application. 

To ensure that all formalities run smoothly, lenders advise a minimum of twelve to sixteen weeks from application  to a lender issuing an offer should be allowed for completion.

Eligibility depends on income and outgoings in the UK. If applicants have a good income relative to current commitments and have a clean credit record, the application is likely to be accepted for finance.

Bank’s arrangement fee – typically between 1% and 2.5% of the loan amount.  The fee will be deducted by the lender from your bank account following completion.

Valuation fee – typically between €250 and € 650.

Power of Attorney – this must be provided to a third party in Bulgaria and will cost approximately £75.

Document legalisation - a number of documents will require notarising and apostilling and may cost approximately £200.

Insurances - Buildings insurance in Bulgaria and Life Insurance in the UK are mandatory requirements of the majority of lenders.

Notary fees  and local taxes - these are payable when buying in Bulgaria, are approximately 3% of the purchase price of the property and include registration at various local and national authorities. VAT (at 20%) is charged on most new properties and should already be included in the purchase price.  

Initial Engagement fee - £200

Application fee: £400 plus a further £200 will be payable on completion.