Alpha Panareti Mortgage Scheme

The cost of property in Cyprus has dramatically increased recently and according to official sources, prices are likely to go up by 50% by the year 2007.

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

NEW MORTGAGE TERMS FOR ALL NEW CLIENTS FROM February 2006:

We are pleased to advise you that favourable new terms and payment arrangements have been negotiated for all clients who purchase properties from Alpha Panareti from February 2006:

Terms of the mortgage loan:


- The bank’s margin will be 1.75%. The interest rate for the loan will therefore be the bank margin plus the three month LIBOR rate for Swiss Francs. This brings the interest rate down to around 2.75%.

- The bank’s arrangement fee has been reduced to 0.5%, with the government mortgage fee remaining at 1%. Therefore a total of 1.5% of the sum borrowed will be added to the mortgage.

- The personal contribution from each client will now be only 20%, payable as 15% on contract and 5% on delivery.

- The mortgage will therefore be for 80% of the total cost of the property (plus the bank charges, above.)

Please see below of more details.

THE ALPHA PANARETI MORTGAGE SCHEME – general information


- Mortgages are available for a period of 10, 15, 20 or even 25 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. 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 less than 3%. 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 0.5% bank arrangement fee, plus a 1% Government mortgage fee and a few small charges for official stamps etc. These charges are not negotiable.

- 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 down 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 a maximum of 80% of the total cost of the property as shown on the Contract of Sale.

- Mortgages may cover the cost of VAT on the property and 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 use our calculator for an accurate representation of your repayment schedule. Simply complete the total figure of the cost of your property including value added tax, plus the number of years the mortgage is required.