Your dream of a beautiful home in the Cypriot sun could be far more attainable than you’d ever imagine. Plus, with a strong property market and tighter laws, there’s never been a better time to buy in Cyprus. But if you don’t have the immediate cash to pay for your property in Cyprus, what other methods of financing are there?

Making the dream a reality

There are essentially two ways for you to pay for your property in Cyprus. Firstly is using your own money. This could be your salary, your savings or even selling off unused heirlooms gathering dust. Equally, you might get rental income from an existing property, or be able to fund through the sale of one.

Don’t miss out – download your free guide, ‘How To Pay For An Overseas Property’ today!

Secondly, your options for borrowing money are quite varied. For instance, you could use a version of lifetime mortgages, whereby you can keep your home but borrow against it. You could also buy a traditional mortgage based on your earnings and ability to pay each month, either from a UK- or Cyprus-based lender.


Discover how to pay for your property in Cyprus.

Discover how to pay for your property in Cyprus.


Around one in four Britons buying a home abroad borrow some money, so there’s no reason you can’t do so to pay for your property in Cyprus.

Around one in four Britons buying a home abroad borrow some money, so there’s no reason you can’t do so to pay for your property in Cyprus.

How can you borrow money to pay for a property in Cyprus?

If you want to keep a place in the UK – and don’t want to sell your British home to pay for your property in Cyprus – then it can make perfect financial sense to borrow money. Your options include the following:

Retirement mortgages

A retirement mortgage is similar to a traditional capital repayment mortgage, but often with a slightly lower loan-to-value. You will normally need to repay before you reach a certain age (this will depend on your lender’s criteria). There’s usually no minimum age to take one out, and how much you borrow will depend on the value of your home. If you don’t meet the lender’s criteria, an equity release plan can sometimes be a better choice.

Equity release

If you’re aged over 55, you have the option of using the equity built up in your property as a tax-free, cash option, without selling up or downsizing. Equity is the difference between the value of your home and the balance of any mortgage, secured loan and charges on it. For anyone who bought their UK home many years ago, this can account to many hundreds of thousands of pounds. And it’s money that’s sitting there, not working for you. The equity is yours, so releasing it is tax-free, in any of these three ways:

  1. Roll-up lifetime mortgage: this means you receive a lump sum and retain 100% ownership of your property, with no monthly payments to make.
  2. Flexible lifetime mortgage: you can take a lump sum of money, retaining 100% ownership. Voluntary payments don’t incur any early charges.
  3. Drawdown lifetime mortgage: again, you release the money as and when you need it and still have 100% ownership. Funds can be kept in a reserve until needed.

You can unlock anything from £10,000 to nearly the entire value of your home, depending on the age of the youngest applicant, the value of your home and its location in the UK, among others. As long as you have a lifetime mortgage from an Equity Release Council-approved lender, you are not at risk of losing your home for as long as it is your main residence. You can also protect a percentage of your equity, ensuring that it remains as an inheritance for your children.

With the pound-euro rate moving rapidly, you need to protect your budget. Read the Property Buyer’s Guide to Currency.

How can you transfer money to pay for your property in Cyprus?

You’ll need a currency specialist to transfer your money to the property seller. Most of our readers recommend Smart Currency Exchange and have left them over a thousand five-star reviews – making them #1 in the UK for money transfer on Trustpilot.

The transfer process is perfectly simple, but, as you know from changing money for holidays, currencies are always changing. Between paying the deposit for your property and paying the final balance, you could see significant movement. Imagine you’ve found your perfect villa for €200,000, and, at £166,500, it’s within your budget of £170,000. But then a change of 10% will take the price over budget, to £182,000.

That’s why over two-thirds of our readers protect their money when they send it abroad. For many, it’s using a forward contract with Smart Currency. This simply locks in the exchange rate for up to twelve months – so it never moves and the above scenario never happens to you.

What are my other options for funding a property purchase in Cyprus?

This is just a snapshot of some of the key areas of financing a home in sunny Cyprus. To find out more, including detailed explanations of your mortgage and equity options, the ins and outs of a forward contract, your options for joint ownership and more, don’t miss our newly released ‘How To Pay For It’ guide. It’s your one-stop shop for financial planning to turn that dream of a new life in Cyprus into a reality!

Download the Cyprus Buying Guide today

The Cyprus Buying Guide takes you through each stage of the property buying process, with practical recommendations from our experts who have been through the process themselves. The guide will help you to:

  Ask the right questions
  Avoid losing money
  Avoid the legal pitfalls
  Move in successfully

Download your free guide to buying in Cyprus

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