Mortgages and developer payment plans

The lending picture

Local bank mortgages exist but are narrow for non-residents: modest loan-to-value, short terms, and interest rates well above UK or EU norms. Many buyers instead use cash, equity released at home, or the developer''s own plan.

How developer plans usually work

• Deposit of roughly 30–40% on signing.
• Staged payments across the build period, often interest-free.
• Balance on or shortly after completion, sometimes with a post-handover tail.

Interest-free is not the same as cost-free. Compare the cash price with the plan price; the gap is your finance cost.

Comparing two offers properly

1. Write down total cash out, including taxes and fees.
2. Note the date of each payment.
3. Ask what discount applies for a shorter plan or full payment.
4. Divide the difference by the years you are financing — that is your effective rate.

Post-handover plans

Attractive for cash flow, but check whether the deed transfers before or after the final payment, and what security the developer holds meanwhile.

Currency

Contracts are often in GBP, EUR or USD. If your income is in a different currency, decide who carries the risk and consider fixing rates for scheduled payments.

What we will not do

Quote you a yield to justify a payment plan you cannot service if rental income is zero for a year. Stress-test the plan on your own income alone.