The Turkey Mortgage is intended for private individuals resident in continental Europe, United Kingdom of Great Britain and Ireland, to finance property and also off-plan projects analyzed and approved by the bank to be used for recreational purposes in Turkey.

One of the conditions for the financing is that security for the  repayment of the loan has to be provided in the form of a mortgage on the property to be purchased by you. We are offering the Turkey Mortgage as a mortgage loan on the basis of annuities. This means that the sum of repayments and interest is a fixed amount during the fixed-interest period. The loan is repaid in full in a number of instalments agreed in advance.

The mortgage loan will amount to at least EUR 25,000 or GBP 20,000 for the financing of a property purchase in Turkey capped at 90% of the execution value (total financing including additional costs). Depending on the applicants country of residence, Loan to Value (LTV) rate may vary.

The duration of the mortgage loan will be at least 5 and at most 20 years.

Below are the current rates on offer in both Euros and Sterling (as at 27/10/09)

You are obliged to take out the following insurances for your loan, some of which are compulsory under Turkish legislation.

Compulsory:

DASK insurance (Dogˇ al Afet Sigortalari Kurumu = natural disaster insurance);

Building insurance (fire, floods, terrorism, earthquakes etc.).

Optional:

Term life insurance

Income protection insurance.

Fire and casualty insurance (DASK and building insurance):

The property must be insured on the basis of the reconstruction value against any conceivable damage during the term of the mortgage with an insurer of repute in Turkey or with one of the insurers recommended by tthe bank. The insurance company must be approved by the bank before the insurances are taken out. You are required to send copies of the policies as proof of the insurance.

Bank Commission  fee: This amounts to 2% of the mortgage loan with a minimum of EUR 1,250 or GBP 1,000.

An expertise company appointed by the bank will carry out the appraisal (survey) of the property. The costs of the appraisal are borne by the client and are set at a fixed amount of EUR 400. To enable us to submit a mortgage proposal to you, you must remit these costs to DHB in advance. You will owe the appraisal costs regardless of whether a proposal is subsequently made to you by the bank or regardless of whether the financing is eventually provided.

GBP/Euro payments to DHB for costs and monthly instalments of the mortgage loan will have to be transfered to the loan account each month. The client remains responsible for a timely payment.

Every calendar year, you can repay at most an extra 10% of the original loan amount with a one time lump sum payment without incurring penalty interest, provided you have informed DHB of your intention at least one month in advance. For the excess amounts a penalty of 2% will be applicable.A full early repayment can be done on the interest fixation dates without any penalty.If a full early repayment has been done in between interest fixation dates than a penalty of 2% on the outstanding balance will be applicable.

The following requirements apply to be eligible for a Turkey Mortgage:

I. You are resident in the United Kingdom of Great Britain and Ireland or you have British/Irish nationality;

II. You are aged over 24 and less than 70 years;

III. You have an employment contract for an indefinite period

IV. You have a clean Experian and/or Equifax credit report;

V. You are not working for a temporary employment agency, in the hotel and catering industry or a sheltered workshop;

VI. You are employed by a business that has been in existence for more than 3 years;

VII. Your salary is paid into a bank account. Salaries paid in cash will not be considered income;

VIII. The mortgage loan must be repaid before you reach the age of 75.