05 January 2009 The worldwide credit crunch has not unexpectedly impacted on Bulgaria as well. Due to the fact that the Bank regulation in Bulgaria is very stringent and the fact that the range of mortgage and credit produucts is not as diverse as it is in the UK, or elsewhere in Western Europe, the impact has not perhaps been so signifcant as it has elesewhere, but nonetheless the availablity of mortgage credit has become considerably less than it was up to around the end of September 2008. Adding to the problem is the fact that the British Pound to Euro exchange rate is some 25% less than it was 4 -6 months ago and this materially affects overall consideration given by Banks regarding borrowers "affordability" -  generally speaking,  total monthly repayment commitments are added to the proposed monthly repayments of whatever amount of loan is being sought in Bulgaria, and if the combined total exceeds 35% - 45% (depending on lender), then at this time we regeret to advise that it would not b possible for us to secure a mortgage for you in Bulgaria. Also all Banks have altered their lending criteria and at this time loans will no longer be available for equity release or refinancing purposes. Furthermore, and for the foreseeable future, self-certification mortgages have been withdrawn from the market. Loans are now, in the main, only available for fully completed properties with Act 16 certificate. Lending amounts have also been signifiacntly reined in to the extent that in practical terms the maximum amount of loan available is only now around 50 - 70% of valaution amount. Bearing in mind that valuations in Bulgaria reflect more of a "bricks and mortar" valuation as opposed to the "market" valuation that Western European borrowers are used to, the loan amount effectively available ends up at around only some 250 - 500 Euros per square metre, depending obvioulsy on location and standard and qulaity of finish of the property in question. The majority of our enquiries for mortgages have come from people who  bought "off pan" some time ago and having paid an initial deposit amount of 30% - 40% of the purchase price, and as the property nears completion they sought to secure moratge faiance to pay the remaining balance. Up to around the end of September 2008, this was (depending on borrower status) entirely possible, but now, with the lending criteria now in place, it is now an impossibility. To all intents and purposes the maximum loan amount presently avalaible is now only some 25% - 40% of purchase price paid and for the majority of enquirers this is quite simply a "non starter". Clearly, all  the of the changes in lending criteria impact negatively on busines volume and if less and less borrowers are able to meet the Banks new lending criteria, then we, in turn, are able to transact an ever reducing volume of business. Consequently, and until such time as the situation improves, the decision has been made to close our offices in Bulgaria. To keep overhead costs to an absloute minimum, enquiries will continue to be dealt with via email.   info@securefinacebg.com You should note that changes in the exchange rate may increase the sterling equivalent of your debt. You should consider carefully before securing other debts against your home.  If you do not keep up repayments on your mortgage over your property abroad it may be repossessed. You should ensure you can afford the repayments before entering into any mortgage or loan agreement.