It’s no secret that banks in Cyprus have had a torrid few years. Long before the March 2013 bail-in that left banks closed for weeks the big banks in Cyprus had all, but stopped giving bank loans to foreign buyers. No matter how little our foreign buyers wanted to borrow or how low risk the potential borrowers were, the banks in Cyprus refused to provide finance. These market conditions stretch way back into late 2011.

As cash buyers have become the norm for many years we were delighted when banks again opened their doors to foreign customers to provide mortgages for holiday homes in Cyprus. The headline grabbing figure of potential borrowings of up to 70% of the purchase price led to many potential buyers thinking it was “business as usual”. Many looked at the banks in Cyprus as a source a cheap and easy credit. 

Unfortunately, the reality on the ground proved to be quite different. Today the once lax lending of the banks has been replaced by a risk averse lending from all the lenders. 70 % contribution from banks quickly evaporates in the face of conservative property valuations, which are designed to protect the banks’ balance sheet at all costs. The reckless lending of the past is indeed gone. Old style lenders are replaced by banks who are determined to thoroughly evaluate your ability to replay the mortgage here in Cyprus.

So, yes, good news with regards the mortgages, but be cautious, as you can be sure, that the lenders will be...