There are advantages and disadvantages to each, and the decision will depend on your particular circumstances.
If you want to use the equity from your British home to help fund your Greek property, you might want to use a UK lender. However, if you receive your income in Euros it might be the best answer to take out a Greek mortgage because having your paycheques and your outgoing mortgage payments in the same currency can save you money on exchange rate variations.
It is not as difficult as you might think to obtain a Greek mortgage, and now that Greece has adopted the Euro as its currency it has gotten much easier still. Mortgages in Greece are available for most foreign buyers, who can obtain them through Greek banks. Be aware that Greek bureaucracy is notoriously slow and your mortgage application might take some time to be approved. However, there should be no issues with approval and you will be able to take out a mortgage to buy your property in Greece.
How do banks in Greece assess mortgages?
Mortgage lenders in Greece usually assess the eligibility of the loan based on the ability to service the loan after any deduction of outstanding credit commitments elsewhere in the world. The amount that you will be able to borrow from a bank in Greece to purchase a property in Greece will be normally based on a percentage of this remaining amount.
How much will I be able to borrow?
Most banks in Greece will be able to lend up to ninety percent of the purchase price of Greek villas or apartments in Greece.
What proof of income will I need to provide?
If you are working for an employer, you will need to produce your payslips from the last three months and your personal bank statements from the last six months. If you are self-employed you are required to show a copy of your Audited Accounts, your last twelve months of business and your last six months of personal bank statements.
Are mortgages available for every type of property?
Loans are available for a wide range of different types of property in Greece. Whether you are purchasing a large villa, a new development, a small town house, or apartments in Greece you will likely be able to get a mortgage.
Will the bank take into account the fact that I am intending to rent out my property in Greece?
No, most Greek banks will not consider any potential rental earnings when calculating a mortgage. If you are applying for a mortgage at a Greek bank, you will need to be able to afford the property for sale in Greece whether you are renting it out or not.