Construction and completion mortgage loan
Now, with the UBB Construction and Completion Mortgage Loan you have the chance to receive up to 100% financing for the making of your new home.
Promotional offer for applications, submitted till 31.03.2017: Use a loan from UBB to refinance your mortgage loan by another bank, without paying any fees during the application and loan approval process.
UBB offers you a mortgage loan with:
- 4.683% variable interest rate in BGN with payroll or regular proceeds in a “Comfort” account
- No application fee
- Maximum loan amount: EUR 250 000 / BGN 500 000
- Preliminary approval within 1 day
- Long repayment period: up to 35 years
With this loan you may finance:
- home construction;
- home completion works;
Collateral: Mortgage on real property
Upon obtaining construction permit and architectural designs’ approval
Up to 40 % of the approved loan amount
|Upon reaching shell-and-core construction stage / Shell-and–Core Certification under Art. 181/||Up to 80 % of the approved loan amount|
|Upon obtaining Provisional Acceptance Certificate (Form 15)||Up to 100 % of the approved loan amount|
- Prepayment Fee - 1% until the 12th monthly installment
- Property appraisal fee – BGN 85 excl. VAT (per apartment )
- Fee for preparing a legal opinion and representation of the bank upon establishing a mortgage – BGN 100
- Credit assessment fee – BGN 100.
- Loan account maintenance fee – BGN 2.50 monthly
- Mortgage release fee - BGN 60
Annual Percentage Rate (APR): 4.88% for a mortgage loan with initial loan amount BGN 80 000, repayment period 30 years and variable interest rate of 4.683% with payroll or regular proceeds in a “Comfort” account: monthly instalment on the loan BGN 414.09; total amount due BGN 150 336.88. Customers should have “Property” insurance. The insurance expense is not included in the APR.
Description of the Methodology for determining a Reference Interest Rate (RIR), used by United Bulgarian Bank AD for determining the variable interest rate on loans to natural persons is avalable here.
UBB offers you "Home and Family Potection" insurance program with comprehensive "Property and Life" insurance coverage, further information about which is available here.
Needed documents for applying
Main documents, needed upon applying for a mortgage loan:
|Document Type||Issuing institution|
For obtaining preliminary approval
|Mortgage loan application form||UBB AD|
|Copy of the Borrower/ Co-debtor’s ID card||---------|
|Certificate of Income, concerning the income amount and the employment contract period of the Borrower and his/her spouse||Issued by the Employer according to a sample form of the Bank|
|Depending on the income source: Annual Tax Return for natural persons, independent employment contracts and Statements of Honoraria (Received Income), Rental Agreements etc.||----------|
For ascertaining marital status and presence/ absence of liabilities
|Certificate of marital status||Issued by the municipality’s Civil Registration Office, according to the permanent address (permanent residence)|
|Certificate of tax liabilities under Art.87, para.6 of the Tax Insurance Procedure Code.||Issued by the local office of the National Revenue Agency, as per the mortgagors’ permanent address|
Documents of the real estate, standing collateral under the loan
|Documents, certifying the real estate’s ownership: Title Deed, Purchase-Sale Agreement or Construction Right Agreement, signed with the State or Municipal Authorities||----------|
|Certificate of encumbrances on the real estates over a minimum period of 10 years prior to submitting the loan application||Issued by the Registry Agency Office|
|Tax valuation certificate for the real estate||Issued by the Municipality, according to the real estate’s location|
Real estate layoutRegarding areas with approved cadastral map- real estate layout, building design/ design of an independent unit in a building
|Issued by the local technical office of the Geodesy, Cartography and Cadastre Agency|
|When the offered collateral is not completed and has not been put into operation: Land ownership documents or such certifying established construction right, Construction Permit, approved architectural designs, surface calculation table, Statement under Art.181, Para.2 of the Spatial Development Act, certifying reached shell-and-core construction stage||Issued by the respective municipal or regional administration|
Documents, pertaining to the specific purpose of the loan
|Detailed budget estimations and an Agreement for Construction and Assembly Works (if any) /concerning loans for construction, repair works and furnishing/||----------|
By judgement of the Bank and depending on the content of provided documents additional documents, relating to the borrower and the collateral may be requested.
Important issues that may come up in the selection of a mortgage loan
- What is the amount that you may set aside for a monthly installment under the loan depending on the amount of your monthly income?
- What could be the maximum tenor of your mortgage loan?
- What could be the amount of your monthly installment?
- What would be the prepayment fee in case you decide to repay your loan ahead of schedule?
- What are all fees accompanying loan granting?
- What are the necessary documents that you must submit?
- How long would the approval procedure take?
- Does the type of collateral matter (brick / panel, village house, vacation property or a land plot) for determining the percentage of financing?
- What is the interest rate type – is it a variable interest rate or the loan covers also a period with a fixed interest rate?
What is the mortgage loan amount that you can afford?
Prior to start looking for a real property that you plan to purchase with a loan it is important to know the amount of the loan that you might have at your disposal during purchase.
The two basic ratios, applied by banks upon determining loan amount, are the following:
- Debt to income ratio:
Serves for calculating the maximum loan amount that you may repay, based on your monthly income and your costs under existing loans (in percentage).
Example: Net monthly income: BGN 1 000* 40% debt-income ratio = BGN 400 monthly obligations under credit product-related installments
- Maximum loan-to-value ratio:
Serves for calculating the maximum amount of the loan that you may obtain against the value of loan collateral. The maximum loan to value ratio differs depending on the loan purpose.
Example: Market value of collateral: BGN 100 000 * 80% max. % of financing =
BGN 80 000 maximum loan amount, depending on collateral.
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