Turkey Central Bank reduces interest rates
Following the announcement of turkey Central banks interest rate cut banks like Ziraatbank and vakifbank have decreased their monthly mortgage rates down to 0,99%. This only qualifies for mortgage amounts for up to 500,000 Turkish Liras and for a minimum term of 180 months.
Ziraat bank has announced, for mortgages between 500,000 and 1,000.000 Turkish liras for 180 months term the interest rate have been decreased to 1.19% and for mortgages above 1,000.000 Turkish liras and again for a minimum 180 months term the mortgage rate has been decreased to 1,39%
Before the latest announcement, the monthly mortgage rates were in the region of 1.5%, the latest interest rate cut is of course very good news for people looking to sell their Property in Turkey and for those that are looking to buy a Turkish property. It is still a lot higher compared to mortgage rates in the UK however we believe that Turkish buyers will now be looking for mortgages as it made a lot more affordable. for a couple of years now the property market in Turkey has been slow, factor that contributed to the slowing down of buyers buying Turkish property in Turkey was the fact that banks were offering up to 24% interest rates on moneys invested in the bank, and with the monthly mortgage rates at a level of 1,5% made buyers keep their funds invested in the bank. Recently Turkish central bank has reduced interest rates by 425 base points bringing interest rates on your moneys that are invested in the bank from 24% down to 19.75%.
Turkish lira is also gaining strength against foreign currencies, today one dollar is 5.59 Turkish liras, one Euro 6.2 Turkish liras and one Sterling (GBP) is 6.78 Turkish liras. Although still very high but there seems to be a positive move for the Turkish lira. From the three images below taken from xe.com you can see the movement over the past three months for the three major currencies used in Turkey for buying a turkey property.
We at Oceanwide Properties have already seen an increase in enquiries from our Turkish buyers, this shows that the latest move from the Central bank has already shown a positive sign with buyers seriously looking to purchase property in Turkey. Most of them have been asking about the latest mortgage rates and as to which banks are offering the low rate of 0.99%, today we also heard that Halk bank has also reduced their monthly mortgage rate down to 0.99%. We believe other private banks will follow suit by cutting their mortgage rates too.
For those who are looking to sell their Turkey property or looking to buy a property in Turkey please have a look at our website on www.oceanwideproperties.co.uk we also have property for sale in Istanbul, Fethiye, kas, kalkan, Bodrum, Calis, Ovacik, Hisaronu, Antalya, Marmaris and many other major resorts across Turkey.