Advice 1: How to take a loan in Europe

Many have heard about the fact that interest rates on loans in Europe is much lower than in our country. However, few know that the citizens of Russia can apply for a loan in a foreign Bank, not living abroad. However, it is quite a laborious process, but it's worth it.
How to take a loan in Europe
Open a foreign Bank account where you are planning to take a loan. For this you need to go to a country in Europe and visit the Bank branch. Prepare a package of documents, proving the identity and your income. Also does not hurt the guarantee of a reputable company the natural person or the credit institution. The fact is that in Europe, with suspicious Russian citizens, so, with nothing except a passport, you are unlikely to progress beyond simple conversation. It must be remembered that most European banks are required to sign a contract in the Latin alphabet, so think carefully about this option.
Contact the consulting company if you are not able to visit the country of the Bank. They will help you to make a statement and fill out a questionnaire, and then act as an intermediary when opening an account. These services are quite expensive, so please check rate consulting firms.
We will start registration of a loan in Europe. Remember that you go to the Bank on this issue is pointless, with the exception of those who already have positive credit history in European credit institutions. Take your servicing Bank letter that will confirm that you have the ability to pay.
If you are going to borrow the estate, it is recommended to choose an intermediary real-estate firm, and in the case of consumer credit or a loan to buy a business, contact a foreign consulting company. To prove their income in this case, it is the mediator, because it issued the loan, and you are the payer.
Send a request for a loan in Europe, which is seen within weeks. After a positive decision you along with a facilitator will be invited to the Bank branch to sign the loan agreement. Also the loan can be registered in Russia. In this case it will be the Ministry of Finance or the Central Bank of the Russian Federation. It is worth noting that if you receive a loan in Europe without traveling abroad, it is likely that in the end the amount of costs and interest is comparable to the cost of Russian loans.

Advice 2 : How to take a loan abroad

Recent years become popular to take loans in foreign banks. The main advantage – low interest rate, averaging 4-6% per annum. The process of providing loan for the border is the same as in our country. The Bank verifies the creditworthiness of a potential borrower, assessing the collateral, one of the conditions of contract is compulsory insurance of property, property is registered. The interest rate will slightly fluctuate depending on the financial condition of the client.
The Bank
You will need
  • Passport, birth certificate may need to collect additional required Bank documents, including a certificate of regular income, to fill the provided questionnaire.
The loan can be taken in any currency of your choice. Maturities vary from 10 to 30 years, place on smaller terms is not profitable, because mortgage payments are too high. The amount of monthly payments should not exceed 30% of the salary of the borrower.
To obtain a loan from a foreign Bank or through an intermediary, or independently. In Italy, lent is not so easy, the Italian banks can borrow at only half the value of the collateral and the client must have the residence permit. French banks are happy to lend to non-residents and the interest rates they have are quite attractive. Greek banks offer loans only to residents of the European Union, however, as German banks, Czech and Slovak. Cyprus banks to lend to everyone and loyal to be provided by the borrower documents.
Before checking the creditworthiness of the borrower was purely conditional, now the deadlines are slightly increased for a thorough study of the documents of the applicant for the loan.
For the Bank loan is the main source of income. Loan agreement the foreign Bank must contain a description of the procedures for the sale of collateral, the borrower has the full right to sell the property without any approvals from the Bank and the buyer himself to renew the loan. Banks prefer customers who are recommended by any of the local companies. The credit will be issued if the selected Bank determines that you will return with interest without complications the entire amount. Banks are not interested customers who may experience difficulty paying because then they have to resell the collateral.
The credit agreement
Required downpayment from 10% to 30% of the loan amount. You must have good credit history in the banks of their country. If our banks are not made to adapt to a client, an overseas Bank can make concessions. There may be additional costs of reviewing the application, evaluation of collateral, registration of the contract.
Useful advice
Foreign banks welcomed the presence of the employment contract in the country where the credit is issued.

Advice 3 : How to get a mortgage in a foreign Bank

The rate of mortgage lending in Russia is now about 15%. The feasibility of buying property at such rate can be questioned, too big overpayment. But European and foreign banks have a more balanced conditions, which the Russians can only dream of.
How to get a mortgage in a foreign Bank

Europe is the most popular among Russians from the point of view of real estate acquisition. According to various estimates, every second Russian acquires a property with a mortgage.

Terms of mortgage lending in Europe

European banks issued mortgage loans with interest rates from 2-3% to 7%. This is 5 times lower than in Russia. Loans can be obtained only on real estate, which is located in the region of the Bank. This means that direct loan funds for the purchase of Russian apartments can not. All because at the time of the mortgage, the apartment will be in pledge at Bank, and, accordingly, it will evaluate its liquidity. The Bank should be confident that he will easily be able to sell the apartment, which provided the loan.

It is worth considering that in some European countries with a difficult economic situation, mortgage loans are on less favorable terms. For example, in Bulgaria, Turkey, Spain, the mortgage rate can reach 9%.

Usually the loans are exclusively for residential property. To obtain the credit for purchase of commercial property, the foreigner would be extremely problematic.

A mortgage loan may provide for up to 30 years, but the Bank will assess the borrower's age. Standard borrowed funds you can get 80% of the property value. But now banks in order to attract borrowers approve loans and 110% of the price of the Builder. The 10% will further go to paying additional fees associated with registration. There are countries with more stringent conditions. For example, in Italy will be required to contribute up to 60-80% of equity.

There are limits on the amount of the mortgage. For example, in Germany not welcome "affordable" mortgage of up to 60 thousand euros, in Italy - up to 100 thousand euros in the UK - up to 500 thousand Euro, and in Turkey loans, and for 10 thousand euros.

In case of delay in mortgage banks typically do not go to court, and insist on the immediate sale of the object.

In some countries you can get a mortgage

All countries can be divided into groups from the point of view of availability of mortgage loans. This:

  1. Mortgage loans are unavailable or to borrowers are so stringent, that to loans practically impossible. Today, the list of such countries includes Italy, Cyprus, Croatia, Austria, Montenegro, Switzerland, England, Romania.
  2. To get a mortgage it is possible, but its design implies a territorial or procedural limitations. For example, Germany, Czech Republic and France.
  3. Mortgage, but credit conditions less favorable. Among these countries, such as Portugal, Spain, Finland.

Stages of registration of mortgages abroad

Experts recommend to choose a real estate object. It often happens that the apartment is already in the ownership of any Bank, then to arrange a mortgage will be possible only in him. Moreover, the Bank can offer more favorable conditions for "their objects". If non-Bank real estate, you can contact any Bank.

Next, you need to contact the Bank (personally or through intermediaries) and are familiar with his requirements and list of requested documents.

Most importantly when deciding on the granting of a mortgage is the borrower's ability to perform its obligations under the loan. Requirements to solvency of borrowers vary in every Bank and country. For example, in Spain, you must have monthly income three times greater than the loan payments.

Largely from the results of the evaluation of a borrower depends on the interest rate, which it provided. Therefore, the more documents provide the borrower the better the terms he will offer. This can proof of income; Bank statement from account of the Bank; certificate of the borrower characteristics of the Bank or BCH; the evidence of a real estate, car. Please note that documents will need to be translated from Russian. The cost of this can reach 150-200 euros.

Most banks will require a certificate from Bank about availability of funds for the down payment. In some countries, additionally, can request a training or work visa, the affidavit of a resident of the country, the inquiry about absence of debts on credits, permission from the authorities to purchase real estate.

By the way, is not always the borrower has the need to contact the Bank, you can often receive installments directly from the developer. For example, such proposals can be used in Bulgaria, Turkey, Montenegro. Installment involves the payment of loan amount in the period of one year without interest.

And experiencing a severe crisis of Greek banks halted mortgage lending and installment is the only option to purchase housing with a shortage of own funds. Do not provide such loans in the UK.

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