Cyprus relaxes rules for second home mortgages
Cyprus relaxes rules for second home mortgages
Cyprus is opening itself up to second home investors, Overseas Property Professional (OPP) reports. In a bid to attract more domestic and overseas property investors, the Central Bank of Cyprus (CBC) has relaxed its rules on second home mortgages.
The CBC has raised the loan-to-value (LTV) rate limit for second home purchases on the island, increasing it from 60 to 70 per cent. Earlier in the week, the CBC circulated the message that it had been wrong to increase the deposit amount required for second home buyers, admitting that it had had a negative effect on international property investors. The new system was introduced last year to try and protect
Cyprus from sub-prime debt, however construction activity on the island has slowed significantly.
Business development manager from Cypriot developer Pafilia, Marc Debieuvre, commented: "The decision to raise the LTV ...on second homes is a good one. The downturn from the UK market has had its impact on Cyprus. Increasing the LTV for second home purchases will make it possible for more buyers to afford their second home in Cyprus."
The reduced construction rate has been put down to developers becoming wary of putting too much stock on the market. The number of new building permits issued fell by almost 10 per cent during January and February of this year, compared to the same period last year.
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30 May 2008
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