Can anyone tell me what the average LTV a polish Bank will lend on? I have seen 85% is this common or is it likely to be less? Also what terms are available? I have read 25-30years but the brokers I have spoken to all state 15-20years max. Thanks

Tom, I have 3. 2 for 20 years and one for 30. They are 92.5%, 90%, and 87% calculated as the mortgage over the total apartment price (apartment + parking + VAT + finish + kitchen). Regards Chris

Chris, who did you use? Huw

Hi Chris, Looks like you got excellent gearing...which bank did you use? I have a mortgage with BZ WBK, but my gearing is lower. I am looking to take out some further mortgages in Poland - which bank would you recommend? Thanks Chris.

I have used a combination of Open finance (DOM Bank) and Expander (GE Money Bank). I found both to be very good (despite a number of negative posts about Expander on the forum). My tactic is to ask for more than I want, then beg for more when they offer me 80%, then add all sorts of other things on like finishing and kitchens. It doesn't always work and there is a lot of back and forth involved, but so far the end results have been positive. I also base the mortgage request on the original pre PS discount price. My advice: allow 6 months to get the best deal/leverage when applying for a mortgage (if you rush you will get the bare minimum) and find a good contact with the PS recommended brokers (some seem to be better than others). I have got some more to do but I am taking a couple of month breather from Polish mortgages. Regards Chris

Can you tell us what fees were payable,to get these mortgages and the lending criteria. I considered taking out a Polish mortgage on a unit in the Metro development but was put of by the very high fees (both for setting up and terminating the mortgage) and the amount of information required to support the application. Regards Alan

Hi Chris, thanks for your thoughts ... When obtaining a mortgage in Poland, what currency would you recommend?

I think it's typically a 2% fee and it's not added to the loan, plus the cost of a valuation of the Flat. My own findings were that pln loans were too expensive, with CHF being best followed by Euro's. But I don't have any experience in practice of Swiss Loans (asked the question on the forum sometime ago - no response). When I looked at all the figures I am tempted just to use UK borrowings. Appreciate the tax advantages that interest payments are deductable as far as Polish Tax Authorities are concerned, but must be remembered that these are not interest only loans. I worked out that I would be a few Hundred £ worse of per annum using UK borrowings if we look at the full scenario of paying tax properly. I can't factor in currency movements. Perhaps this is the way to go until/if the lending market becomes more 'friendly' (hopefully ?) in years to come ? Also a connected issue; if interest only loans are not available in Poland does this mean that rentals can be expected to be 'higher' as mortgage repayments will be higher ? Finally a question for an expert; If you pay polish tax at 19% can your UK borrowing, the interest element that is, be brought into the equation if you pay tax at 40% in the UK ? PS I'm self employed with good accounts and it's not proving easy to get a loan even with very low gearing.

There was a lot of discussion on that very subject on the forum and PS weighed in with an article. I read it all and then went with the lowest rate, which is CHF. (all 3 just over 3.5%)

I have found the fees cheaper than other regions. I will give you exact number next week when I have my spreadsheets to hand. I know all of the charges have been added to the mortgage so this alleviates the need to find more cash up front. Criteria is difficult to say. I am employed and have a regular salary so I don't struggle to prove my income. My wife works too. Generally they ask you to fill out an financial assessment (or I send them a summary anyway) but don't set minimum criteria. I always do my best to sound like the Duke of Westminster without telling too many bald faced lies. I have wondered how many mortgages I can get before they start saying no. I don't think there are any hard boundaries and criteria, you just have to convince them it is good business and you will pay them it all back and on time. To be totally honest I have not spent much time on the termination fees. I am in it for the long haul so that was not a factor I analysed. You need to send a lot of information, but I would not say it is excessive. I would not loan money to someone I have never seen from a foreign country without wanting to check out a few details first. Regards Chris