Czech Mortgages

Despite one of the lowest homeownership levels in Central & Eastern Europe at 49%, the Czech mortgage market is one of the most developed, with an increasing number of the population prepared to use finance to purchase new property.

Finance for foreign investors with EU citizenship is readily available and is becoming more and more accessible. While in the past you had to set up a company to invest in the Czech Republic, there is now the option of applying for an EU card, available to all EU citizens. You can read more about this here .

The Czech mortgage market is the best in Central & Eastern Europe, with 110% Loan to Value available to domestic borrowers and 100% to foreign investors - though it should be noted this is very unusual and 90% is more typical.

Interest rates are amongst the lowest in Europe and mortgage rates generally vary between 4.7 and 6.5% / annum.

Self employed investors are also considered provided they can prove their level of income.

CZECH MORTGAGE APPLICATION PROCESS

The application process in the Czech Republic is also a relatively straightforweard one. Applications can be made directly to a lender but it requires a very good understanding of Czech law and a grasp of the language.

Most foreign investors use a Czech mortgage broker. They provide a comparable level of service to UK brokers and can guide you through the process, find the best deal and, where needed, offer translation services and oversee the process.

Fees range from £300 to £500.

Documentation required:

• Passport (photocopy acceptable)
• Further ID (eg. driving license)
• Confirmation of earnings (eg. P60 or contract of employment)
• 3 months of bank statements

CZECH MORTGAGE BROKER

Star Capital Finance s.r.o
19 Wenceslas Square
Prague 1
Czech Republic
Tel: 00 +42 (0) 234 656 121
Email: j.malir@scfinance.cz
Web: www.scfinance.cz