Special Mortgage Offer from Berkeley Group for Turkish Investors

Berkeley Group has an exclusive offer for overseas investors! A low-interest mortgage, designed specifically for new residential developments, now provides Turkish citizens living abroad with the opportunity to own property in the UK. Investing in real estate in the UK presents Turkish investors with an attractive opportunity, offering both long-term capital appreciation and steady rental income. In this article, we explain all the details of this offer that allows you to invest in a property that generates income.

Key Highlights and Value Proposition:

This mortgage, exclusively available for Berkeley developments, aims to make it easier for overseas investors to purchase newly built homes in the UK.

Key Features of the Offer:

• Low Initial Interest Rate: A fixed and competitive interest rate of 4.03% is available for the first two years. This ensures predictable and lower monthly payments during the initial investment period.

• Opportunity to Invest from Abroad: Citizens of many countries, including Turkey, are eligible to own property in the UK without having to reside there.

• Exclusive to New Developments: These terms apply solely to the purchase of newly built properties developed by Berkeley in England or Wales.

In summary: a fixed 4.03% interest rate with low initial payments (for the first 2 years), the opportunity to invest without residing in the UK, the chance to purchase new Berkeley developments, and the option to apply either as an individual or through a company (SPV).

Details of the Offer

1. Who Can Apply?

• No Residency Requirement: Suitable for non-residents, valid visa holders, and citizens living abroad. Turkey is on the list of eligible countries.

• Investment Purpose Only (Buy-to-Let): The property must be rented out; neither the buyer nor their family members are permitted to live in it.

• Age and Credit Score: At least one applicant must be over 21, and all applicants must have a clean credit history.

• Company Purchase: The mortgage can be taken out individually or through a qualifying company (SPV).

Thanks to the absence of a residency requirement, individuals living in Turkey are also eligible to apply. However, since the mortgage is strictly for investment purposes, personal use of the property is not allowed. You can only use this loan if the property is intended to be rented out.

2. Financial Features of the Mortgage

• Interest Rate: Fixed at 4.03% annually for loans up to 70% of the property’s value for the first 2 years.

• After 2 Years: Once the fixed period ends, the rate becomes variable. The new rate will be calculated as the Bank of England (BOE) base rate plus 3.54%. This means monthly payments may increase or decrease depending on market conditions.

• Loan Term: Maximum of 35 years.

• Available Loan Amounts:

  • Up to £1,500,000 with 70% Loan-to-Value (LTV).

  • Up to £3,000,000 with 60% Loan-to-Value (LTV).

3. Costs and Fees

• Product Fee: A one-time fee payable at the start of the mortgage. This amounts to 1.50% of the loan for capital-and-interest plans, or 1.75% for interest-only plans. This represents a significant upfront cost.

• Monthly Fee: £25 administrative fee charged throughout the mortgage term.

• Early Repayment Charges (ERC): If the mortgage is repaid during the initial two-year fixed rate period, penalties apply:

  • Within the first year: 2% of the outstanding balance.

  • Within the second year: 1% of the outstanding balance.

  • Additional “Break Costs” may also apply.

• Other Costs: Valuation (survey) and lender’s legal fees will also be payable by the borrower (“AT COST”).

Key Considerations

Advantages:

• As a Turkish citizen not residing in the UK, you can still access an investment mortgage.

• A clear and low fixed interest rate during the first two years.

• Direct purchase from a reputable developer’s new project.

Points to Watch Out For:

• Main Risk: After two years, the rate becomes variable and may increase. You should have a plan in place (e.g., refinancing or selling).

• Limited Scope: This mortgage is available only for newly built Berkeley properties.

• Upfront Cost: A product fee of up to 1.75% of the loan amount is a significant initial expense.

• Broker Requirement: Applications can only be made through accredited mortgage brokers under the “Own New” scheme.

• Repayment Warning: As with any mortgage, failure to make repayments on time could result in repossession of your property.