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Cyprus Mortgages - A Quick Guide by Aphrodite

In Cyprus, mortgages are still available for up to 70% of a property's value despite the downturn in the economic climate during recent years. There are some things to watch out for though.

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Information about Cyprus

We know this is the boring part...
But the information in these pages is vital.

We've tried to provide a quick, insightful version of this stimulating topic in an attempt to stop you from falling asleep. Below is a quick guide to Cyprus mortgages and buying a home in the Republic, as well as a section on known issues within the Cypriot lending market.

 

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Things have changed in the Cyprus Mortgage market during the past six years

Since the Republic of Cyprus became a full E.U. member state back in 2004, its financial services sector has evolved to meet the ever increasing number of regulations imposed by the European Union. Indeed, in Cyprus, mortgages were largely unknown prior to the initial property boom between 2000 and 2005, largely due to the simple fact that any given tract of land tended to stay in the same family for generations without ever being sold.

Only when large numbers of British and European real estate buyers began arriving on the island in the late nineties, did Cyprus' Financial Institutions begin to offer formalised property loans in a fairly easygoing manner.

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However, this free approach to lending also led to big problems with Cyprus Mortgages.

We tell you what others don't...

When the Cyprus property sales boom reached new heights back in 2004 and 2005, some less scrupulous property developers used the easy availability of financing, and the Cypriot Land Registry's huge backlog, to obtain mortgages on properties they had already sold.

They were remortgaging their clients' homes to finance their own future building projects.

This of course meant that the clients in question did not actually own the properties they had bought in good faith, and were therefore unable to resell them without the property developers first paying off the banks.

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And while the property boom continued this practice went completely unnoticed by anyone, as developers were able to clear their outstanding debts with relative ease when their future projects were sold to eager British and European buyers. As soon as these original debts had been cleared, however, the developers would once again approach the lenders of Cyprus, mortgages would be taken out on the newly finished project, and the cycle would be continued for another round of construction.

This went on until the global economic climate began to 'cool' back in 2008, and the overseas property market began to collapse almost overnight. With no fresh clients to purchase their new projects, heavily-mortgaged property developers found themselves unable to meet their financial obligations, and a surprising number of home buyers were unable to get their Cypriot title deeds, or actually found Cypriot banks repossessing their homes for debts they did not know existed.

Have you ever wondered why you're no longer seeing British TV programmes and magazines advertising Cyprus Property Sales?

Well, wonder no more... It's because of the problems caused for British property buyers by a handful of developers' shady dealings with Cyprus mortgages and lenders, and the subsequent outcry which prompted British media watchdogs to take action on this matter.

But despite all this, the Republic of Cyprus is actually still one of the safest Mediterranean countries to buy a home in, always provided of course you're dealing with someone ethical who looks out for your interests.

We don't just want to sell you a property.
We make sure you're safe, satisfied and informed.

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Legal Safeguards...

On the whole, property purchases in the Republic of Cyprus are safer than they are in most European Union countries, the UK included. One just has to remember that things function slightly differently here, and that there are other things to watch out for than in the British property market.

The Republic's legal system is also based on the British system, with independent power exercised by the judiciary. Cyprus is a member of the UN, the British Commonwealth, World Bank, IMF and the European Union. Furthermore, since May 1st 2009, Cyprus mortgages are bound by European Union financial legislation.

Our Portfolio

Our portfolio presents you with the safest selection of homes available in the Republic of Cyprus. And whilst this resource is far from exhaustive, it does provide a fair idea of just what is available.

If you are searching for a home on Aphrodite's isle, please take a look at our Cyprus Property Sales portfolio and remember; if our site does not contain exactly what you are looking for, simply contact us for a pressure-free chat about your needs.

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