Mortgages in Croatia for buying property in Croatia
Much was said about this, as soon as people in UK realised of the big investment that can be buying a property in Croatia everyone wanted to know if Croatian banks would lend money to foreigners with the only purpose of buying a property in Croatia.
Unfortunately, banks in Croatia are worried about lending money to people whose income is outside the country who could be difficult to pursue in default. Many people still interested in buying property in Croatia started to wonder if by opening a Croatian limited company could then able those to obtain a mortgage in name of that company based in Croatia. The problem is that that Croatian company have to prove that is involved in business actively as any company would. That's when the Croatian company model fails: in order to prove substantial economical activities to the banks in Croatia that company should be in activity for at least three years according to some banks. Then, if you planned to buy property in Croatia by setting a company and expect that you could be entitled to get a mortgage in Croatia that way then think twice.
Other idea was to borrow from British banks
but once again they don't want to lend to people buying a property in
Croatia -a country outside Europe at present. Things might change
in a short term with Croatia ascension in the EU in 2008. Right
now, the only way is to lend on the equity in UK properties and many buyers
are following this route.
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