The cost of property in Cyprus has increased dramatically recently and according to official sources, prices are likely to go up by 30% by the year 2008.

Now is the time to buy! We can now offer up to 80% mortgages.

Act now while prices are still good value and you can benefit from our highly competitive financial facilities:

If you do not wish to purchase a property outright, an Alpha Panareti housing loan
is available at an interest rate of approximately 2.6%.

• Mortgages are available for a period of 10, 15, 20 or even 30 years, dependent on age. The holder must be 70 years or less at the end of the mortgage term.
  
  
• Mortgages are managed in Swiss Francs by Alpha Bank Ltd (formerly Nat West Lombard). The Swiss Franc is used because it is exceptionally stable by comparison with other currencies, allowing a low interest rate. Clients may request any other currency and pay the appropriate interest rate accordingly.
  
  
• The interest rate is composed of the bank’s margin of 1.75% plus the three month LIBOR rate for Swiss Francs, giving a total interest rate of about 2.6%. This does fluctuate very slightly with LIBOR, but the amount is taken into account with the mortgage quotation and offer, which will give a fixed monthly repayment rate. Therefore, although it is not a ‘fixed rate’ mortgage, the repayment figure remains much the same through the term of the mortgage. The bank reserves the right to re-negotiate the repayment figure at set intervals, but it is very rarely altered.
  
  
• Repayments start about 1 month after delivery of the property and may be paid monthly or quarterly, by arrangement.
  
  
• The bank will add their charges to the total of the mortgage. There is a 1% bank set up fee, plus a 1% Government mortgage fee and a few small charges for official stamps etc. These charges are not negotiable and are standard in Cyprus throughout the banking system.
  
  
• The mortgage can be reduced by lump sum payments or be paid off in full without penalty. This can happen at fixed three monthly ‘windows’, as detailed in the Letter of Offer for the mortgage.
  
  
• The bank will require the client to sign a specific Power of Attorney, allowing a Cypriot solicitor to administer the mortgage on behalf of the client. The client’s interests are safeguarded by the bank’s absolute insistence on sight of all instructions to the solicitor regarding the release of funds from the mortgage. (Instructions are accepted by e-mail or by fax – it is important that a client has
  access to one or other form of communication.) The bank will also check that work has genuinely been completed before releasing funds to Alpha Panareti.
  
  
• Funds will be requested from the mortgage by Alpha Panareti during the building period, according to a work Progress Schedule agreed with the client. Please note that it is not usual to wait until a property is completed before drawing out the entire mortgage.
  
  
• Interest on the mortgage will start to accrue on the sums drawn down against building progress. This interest will appear on mortgage statements from the bank. However, these sums are not immediately due for payment by the client – the repayment figure stated on the Letter of Offer from the bank has taken the sums into account and the first repayment will be as stated on the Letter of Offer.
  
  
• Mortgages may cover the cost of VAT on the property, the cost of any extras such as furniture and electrical goods packages etc., provided the costs are included in the Contract of Sale and the initial application for the mortgage. These costs cannot be added later. Mortgage Calculator – please click here to use the mortgage calculator for an accurate representation of your repayment schedule. Simply complete the total figure of the cost of your property including tax, plus the number of years the mortgage is required.
  
  
• Mortgages may be paid up in full at any time without penalty.

• Initial Reservation Deposit CY£ 2,000 (this holds the property and price, prior to inspection)
  
  
• Upon site inspection and signing of the purchase contact 15% less the initial reservation fee within two months.
  
  
• 5% Upon completion and delivery of the property.
  
  
• The balance of 80% can be mortgaged at approximately 2.6% interest rate and can be fixed up to a period of twenty five years (dependant on age) with no
  re-payment penalties. If upon inspection visit you choose not to proceed with the proposed purchase, Alpha Panareti will refund the initial reservation deposit of
  CY£ 2,000.