Interest-only euro mortgage aimed at Bulgaria investorsInterest-only euro mortgage aimed at Bulgaria investors
Property investors thinking of expanding their portfolio to include homes in Bulgaria are being targeted by a new mortgage product from the UK branch of one of Greece's biggest finance institutions.
Piraeus Bank London has launched an interest-only euro mortgage product on Bulgarian property in response to the soaring popularity of Bulgaria as a real estate investment hotspot.
Exclusive to the UK and Bulgaria, the new interest- only product is available for up to ten years.
Irini Tzortzoglou, head of retail banking, said that many investors are buying properties off-plan "with a view to obtaining capital gain and rental income from tourism once completed".
"Offering a finance product which combines a ten-year interest only period and one which takes into account up to 30 per cent of projected rental income is highly exciting for investors," he added.
The mortgage terms available also include up to 75 per cent loan-to-value, lowest interest rates on Bulgarian mortgages in the UK at 6.5 per cent and repayment term of five to 25 years
According to Avatar International, a seaside villa in Bulgaria can be purchased for around £25,000, while rural properties usually cost even less. 