Releasing cash from a property by obtaining a mortgage is one way to release equity. Many overseas home owners purchased their properties for cash several years ago, and have watched the prices go up steadily of other properties they would like to own. Releasing their cash in their present property with a mortgage enables them to apply that equity into a new property, often purchased with a mortgaqe. This may enable them to double their rental yields. This makes particularly good sense if your gross rental yields are in the 14-19% range of targeted investment properties. Ask an Expert at the Turkish Mortgage Centre how to achieve these rental yields.

Sometimes a property is mortgaged as part of a more aggressive investment strategy, to reinvest in high yielding Turkish deposits if structured correctly the interest on the Turkish deposits can more than cover the mortgage interest. Sometimes this is a useful strategy for prefunding several years of property maintenance expenses and taxes. Ask the experts at Turkish Mortgage Centre how such strategies might serve your purposes.

Always seek independent professional advice.

Obtaining a mortgage in Turkey on a property which has already been transferred into your name is not as simple in other countries.

First, the mortgage terms (interest rate, LTV, duration maturity, etc, etc) will not be as favourable as the terms of a mortgage used to purchase a property. Please note the distinction. If you have a choice between obtaining a mortgage to complete the purchase payment for a property you are buying, OR, obtaining a mortgage after the title has been transferred into your name, you will obtain better mortgage terms for the former.

Please also note that the qualification criteria are also more stringent – you may not obtain a PRIME mortgage if your source of income does not meet the qualifying criteria. Always check with an expert at the Turkish Mortgage Centre for the latest terms and conditions for all lenders in the market.

Your home is at risk if you do not keep up mortgage repayments. Changes in exchange rates can cause the GBP $ Sterling value of a foreign currency mortgage and repayments to increase. This is not an offer of mortgage. Always seek independent professional advice - ask an FSA regulated independent financial advisor if in doubt. Licensed CeMap advisors working for non-regulated firms are not regulated. Cross border mortgages are not regulated in the UK under the Financial Services Act. Please refer to our website and other publications for additional information. All information is subject to change without notice.