Poland: Mortgages

Polish lending criteria

Do I qualify for a Polish mortgage?

To qualify for a mortgage in Poland, a calculation is used to establish whether you can afford to maintain the mortgage repayments. This will automatically happen when you complete the application form, and Conti won’t charge you for this service.

How much can I borrow?

• Calculation based on the valuation or purchase price, whichever is the lower

• Up to 80% of LTV available for house purchase, remortgage or home improvements

• Based on joint net “take home” pay, where joint income is applicable

• Existing liabilities, e.g. mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Polish mortgage payments. All this must not exceed 38% of your monthly net income

What evidence of income do I need?

If you are employed:
• Your last six month’s personal bank statements

If you are self-employed:
• Your last two year’s audited accounts and tax returns
• Your last six month’s business bank statements
• Your last six month’s personal bank statements.

Example mortgage payments

If, for example, your net joint monthly income is £2,500, 38% of this equates to £950. If your only liability is your mortgage payment, of say £300, this would leave a balance of £650 for your Polish mortgage repayment

What types of Polish mortgages are available?
For our latest rates and to see the different types of Polish mortgages on offer, please visit our website or speak to one of our advisers.

• Loans available in up to 80% of the property’s value for a maximum 20 year term.
• The maximum term of any mortgage is 20 years on a case by case basis
• Repayment mortgages available
• Mortgages in currencies other than Euros will only be possible if the applicant is paid in that currency
• The minimum loan you can take out is £40,000 (or currency equivalent)

Essential information for buying properties in Poland

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

• It is advisable to organise your mortgage finance before agreeing to purchase a property.

• It is of paramount importance to seek independent advice from an overseas solicitor.

• A Polish bank account will be required, some but not all of the lenders offer a service of opening this for you.

• You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender, which will include a copy of the power of attorney if applicable.

• Note that non-Polish nationals can only take out a loan in Poland if they have a card of habitual or temporary residence in Poland.

• If you are a non-Polish national, although apartments can be purchased in your own name, please check the latest legal position when purchasing land or a property.

• You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a property in Poland. The solicitor may be incorporating costs for assigning the mortgage within his charges, along with the title deeds to the land registry. You should establish the actual cost of these before proceeding with a loan application. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

• Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevant application form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding, and you may forfeit any deposit monies paid.

• The completion of a Polish mortgage takes place in front of an appointed notary and all parties to the mortgage, including the vendor, lawyers and a representative of the lender need to be present. However, a power of attorney may be used to sign on your behalf for the mortgage and land deeds.

© Conti Financial Services Limited 2008

This article is reproduced with the kind permission of Conti Financial Services Limited.

For information and advice on overseas mortgages and residential finance in over 30 countries, contact Conti Financial Services Ltd on www.mortgagesoverseas.com