Availability Of Polish Mortgage Products For Foreigners

The mortgage market in Poland for foreign investors is still in its early stages of development, so the range of products available is not as comprehensive as in more mature markets.
Below we have presented a description of typical mortgage products and information on their availability to foreign investors in Poland. More specific information is detailed on our mortgage information page.

Variable rate mortgages

Central banks around the world set base rates, which reflect the cost of borrowing from the money markets and are based on prevailing economic conditions. The standard variable rate varies in conjunction to the central bank’s base rate, so if the base rate changes the variable rate will change in accordance. For Euro loans, Interest payments are calculated as a function of the base rate set by the European central bank (EURIBOR). Banks will lend according to this base rate plus an additional margin, which is set by a number of factors, mainly related to the risk associated with each loan. The bank’s margin is the most important factor to consider when evaluating different lender offers, as a lower margin can save the borrower considerable amounts of money over the course of a loan. The advantage of the standard variable rate mortgage is that in times of low base rate the standard variable rate will also be low meaning your mortgage interest repayments will be low.
Available? YES, these are the most common mortgages available to foreigners in Poland, and are offered by all lenders. Our mortgage information page has more detailed information about the types of variable rate mortgages available, and examples with interest rates can be found here.

Fixed rate mortgages

The fixed rate mortgage option is a mortgage where by you and the lender agree on a fixed interest rate for a set period of time. After this set period the fixed rate will then change to the mortgage lenders variable rate. Fixed rate mortgages are good if you get a low interest rate for a set period before interest rates rise. For example if you got a low interest rate fixed for five years and then interest rates rose and stayed high for the majority of the five years you will most likely save alot of money. A fixed rate mortgage is the probably the best mortgage option if interest rates are unstable because you are not taking any risks. Of course if interest rates drop after you have taken out the fixed rate policy you may lose out. This is where the variable rate mortgage comes into play. The fixed rate mortgage is generally the best option for a less risky mortgage where you know exactly what you will be paying.
Available? YES, but limited. We hope to have details of fixed rate mortgages in the near future.

Discounted rate mortgages

Discounted rate mortgages are used by lenders to attract new customers by offering a rate lower than the standard variable rate they offer for a set period. A discounted rate mortgage works in exactly the same way as the standard variable rate mortgage except the interest is lower until the discounted term period ends. Then the rate goes back to the lenders standard variable rate.
Available? YES, Some Polish lenders are offering discounted rate products. One of our lenders is offering a 50% discount on its interest rate margin until the end of September 2006.

Buy to let Mortgages

A mortgage suited to borrowers who want to rent out the property. The decision on whether the borrower can repay this type of mortgage will take into account the future rental income from the property in addition to the personal income of the borrower.
Available? YES, typically 50% of prospective rental income will be taken into account when determining eligibility and the terms of the loan. More detailed information can be found on our mortgage information page.

Interest only Mortgage

A mortgage whereby the borrower is only required to pay interest on the amount borrowed during the mortgage term. It is the borrowers responsibility to ensure that enough funds will exist (either through an investment policy or other means) to repay the full mortgage at the end of the term.
Available? NO, not currently available for the entire loan duration, but some banks are offering a deferment of up to 5 years on capital repayments. During this grace period, only interest on the loan will be payable.

Self-certification Mortgage

A mortgage where the borrower may declare their own earnings without having to provide proof of this income. These mortgages have been designed to assist borrowers who can afford to make mortgage payments, but find it difficult to prove their earnings via traditional methods.
Available? NO, not currently available to foreigners in Poland.

Non-status mortgage

A mortgage where a lender may not require income details from you, or may accept some previous poor credit history.
Available? NO, not currently available to foreigners in Poland.

Mortgages for pension funds (e.g. SIPPs for UK investors)

From April 6th 2006, UK investors will be able to hold residential property in their Self Invested Pension Plan. It will also be possible to take out a mortgage for property investments within this pension.
Available? NO, there are currently no mortgage products from Polish lenders for those who wish to borrow within their personal pension. Poland Mortgage Direct appreciates the potential demand for such a product and is currently working with our lenders to create a suitable loan. Should such a product become available, and you would like to hear about it, please send us an email (address on contact page) and we will contact you with information when it becomes available.

Figures and information provided on this website are meant purely as an indicator of the loan products available through our affiliated mortgage lenders. Specific questions, such as those regarding commission, redemption penalties and paperwork requirements, should be aimed directly at the mortgage lenders themselves.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The value of your loan repayments under a foreign currency mortgage can fluctuate in value if your income is not paid in the same currency.