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Deposit and mortgage terms for property purchased in Cyprus

Mortgage terms for all new clients from February 2006:

We are pleased to advise you of the following new terms and payment arrangements for all clients who purchase properties through Universal Vacations Realty, Cyprus effect from today’s date.

Qualifying develpments in Cyprus include: Coral View, Arcadia Gardens, Saint George Hills Resort, Thalassa View Gardens and Chloraka terrace.

Please note that these terms cannot be applied retrospectively – this has already been checked with the bank.  However, it’s possible that existing clients whose mortgage applications are being processed at the moment may find themselves with the more favourable terms in their Letter of Offer from the bank.

Please note: This package is has been arranged exclusively for our customers and is only available on our Properties.
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Terms of the mortgage loan:
  • The bank’s margin will be 1.75%. The interest rate for the loan will therefore be the bank margin plus the three month LIBOR rate in Swiss Francs, as before, now justifying us in advertising the interest rate as ‘less than 3%’ or ‘around 2.6%’.

  • The bank’s arrangement fee has been reduced to 0.5%, but the Cyprus government mortgage fee remains at 1%. Therefore a total of 1.5% of the sum borrowed will be added to the mortgage.

  • The personal contribution from each client will now be only 20%, payable as 15% up front and 5% on delivery. The bank will not accept a lower amount for the main payment.

  • The mortgage will therefore be for 80% of the total cost of the property (plus the bank charges, above.)

  • Mortgages are available for a period of 10, 15, 20 or even 30 years, dependent on age. The holder must be 70 years or less at the end of the mortgage term.

  • Mortgages are managed in Swiss Francs by Alpha Bank Ltd (formerly Nat West Lombard). The Swiss Franc is used because it is exceptionally stable by comparison with other currencies, allowing a low interest rate. Clients may request any other currency and pay the appropriate interest rate accordingly.

  • The bank will add their charges to the total of the mortgage. There is a 1% bank set up fee, plus a 1% Government mortgage fee and a few small charges for official stamps etc. These charges are not negotiable and are standard in Cyprus throughout the banking system.

  • The mortgage can be reduced by lump sum payments or be paid off in full without penalty. This can happen at fixed three monthly ‘windows’, as detailed in the Letter of Offer for the mortgage.

  • The bank will require the client to sign a specific Power of Attorney, allowing a Cypriot solicitor to administer the mortgage on behalf of the client. The client’s interests are safeguarded by the bank’s absolute insistence on sight of all instructions to the solicitor regarding the release of funds from the mortgage. (Instructions are accepted by e-mail or by fax – it is important that a client has
    access to one or other form of communication.) The bank will also check that work has genuinely been completed before releasing funds to the developer.
  • Funds will be requested from the mortgage during the building period, according to a work Progress Schedule agreed with the client. Please note that it is not usual to wait until a property is completed before drawing out the entire mortgage.

  • Interest on the mortgage will start to accrue on the sums drawn down against building progress. This interest will appear on mortgage statements from the bank. However, these sums are not immediately due for payment by the client – the repayment figure stated on the Letter of Offer from the bank has taken the sums into account and the first repayment will be as stated on the Letter of Offer.
  • Mortgages may cover the cost of VAT on the property, the cost of any extras such as furniture and electrical goods packages etc., provided the costs are included in the Contract of Sale and the initial application for the mortgage. These costs cannot be added later. Mortgage Calculator – please click the mortgage calculator below to calculate an accurate representation of your repayment schedule. Simply complete the total figure of the cost of your property including tax, plus the number of years the mortgage is required.

  • Mortgages may be paid up in full at any time without penalty.

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