Mortgage products we offer
Repayment and collection methods
Capital & Interest
The most common type of repayment method for mortgages which finance the purchase of overseas property is the Capital & Interest method. Each instalment includes a portion of the capital as well as interest* for the month and as the loan matures the capital portion of the instalment becomes bigger.
Interest Only
This mortgage product provides for only interest* to be paid on the amount borrowed and the repayment of capital will occur at the end of the mortgage term. Because the capital owed to the bank does not reduce and therefore the risk to the bank over time remains greater, the interest rate applied is often higher than for Capital & Interest mortgages. Furthermore the maximum mortgage term offered on Interest Only mortgages is usually less than that for Capital & Interest mortgages.
Click here to see our Bulgaria, the UK and Greece mortgage terms.
* Interest payable on all our mortgages is set by reference to the European Central Bank Base Rate or EURIBOR or LIBOR depending on the currency of the loan and other factors.
Collection
Monthly overseas mortgage instalments are collected by Direct Debit – in Sterling from UK bank accounts and in Euros from Irish bank accounts. When collecting Sterling, we automatically convert the Euro instalments at market rates.
In accordance with Direct Debit rules we notify you in good time of the next instalment amount (if this changes) that will be collected from your bank account.
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.