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BULGARIA PRODUCT TERMS

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PIRAEUS BANK UK – STANDARD OVERSEAS MORTGAGE PRODUCT: BULGARIA

Valid from 18th April 2008; Supersedes previous product offerings
Currency Euro
Loan security First charge on residential property / land in Bulgaria
Loan purpose Purchase, re-mortgage or equity release on residential property or land with residential planning permission in Bulgaria
Repayment method Capital & interest, or Interest Only
Collected by Direct Debit in Sterling from UK bank accounts or in Euros from Irish bank accounts
Interest rate
One month Euribor plus fixed margin of:
Initial rate (Current Euribor 4.37%)
Overall cost for comparison*
Property - Capital & interest
3.00%
7.37%
APR 7.98%
Property - Interest Only
3.25%
7.62%
APR 8.34%
Land - Capital & interest
3.50%
7.87%
APR 9.51%
Land - Interest Only
3.75%
8.12%
APR 9.20%
  * APR is calculated on a maximum term, minimum loan amount, non-company mortgage on an apartment at a Euribor rate of 4.37%
Updated 18th April 2008
Maximum LTV (lower of purchase price or valuation) Property
75%
Land
60%
Term Property - Capital & interest
to 25 years
Property - Interest Only
to 10 years
Land - Capital & interest, or Interest Only
to 5 years
Minimum loan amount Single or joint applicant(s)
€40,000
Maximum loan amount No upper limit
Application fee Non-refundable: £125 for individual, joint or company applicants
Arrangement fee 1% of loan amount for individuals; 2% for companies
Valuation fee £100 for apartments or land; contact us for houses
Legal fees Applicant is responsible for instructing a Bulgarian lawyer and their fees; and is responsible for the Bank’s legal costs
Early repayment charge 3% in year 1, 2% in year 2, 1% in year 3
Eligibility UK or Irish residents; or,
UK or Irish expatriates retaining UK or Irish banking facilities

Must be at least 21 years old at application (70 or under at loan maturity) with a clean credit history, and stable earnings

Applicants are assessed on individual affordability (up to 30% of projected certifiable rental income on the property to be mortgaged may be included when assessing status)

Companies: must be non-trading, incorporated in Bulgaria solely for the purpose of this transaction; a maximum of 2 members, who meet individual eligibility and guarantee the mortgage
Maximum number of joint applicants 2 individuals - the property purchase and the mortgage application must be in joint names for married buyers
Building insurance Required
Life insurance Recommended, not mandatory

Your property may be repossessed if you do not keep up repayments on your mortgage.

Changes in the exchange rate may increase the sterling equivalent of your debt.

This is not a UK regulated mortgage.

Indicative FX rates

Last updated 23/07/08 9:00pm

We buy at:

UK £1 = €1.2670 EU

We sell at:

UK £1 = €1.2799 EU

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