# alpha bank



## chrissie (Feb 20, 2008)

hi well what can i say alpha bank is not lending money . we did have an a proved mortgage with them but now we dont we are up a creak without a paddle . i just wont to cry. im sorry i dont know what to say . we just wont our apartment in paralimni . talk soon. sorry:


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## Veronica (Apr 5, 2008)

chrissie said:


> hi well what can i say alpha bank is not lending money . we did have an a proved mortgage with them but now we dont we are up a creak without a paddle . i just wont to cry. im sorry i dont know what to say . we just wont our apartment in paralimni . talk soon. sorry:


So sorry to hear your bad news chrissie.
You are not alone in this situation as Alpha bank are withdrawing mortgage offers from many people and I think it will be some time before things get any better.
I do hope you manage to find some way around it.

Regards Veronica


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## Cleo Shahateet (Feb 23, 2009)

I am also very angry with Alpha Bank. I had a buyer client who was approved for a loan after they made him deposit a certain amount in there bank. Finally when the developers approved the sale of the re-sale "no title deeds"Alpha stopped lending. Now the client is getting a loan from another bank COOP. All this started in June, they wasted so much time for the buyers, sellers, me <snip>.


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## chrissie (Feb 20, 2008)

Veronica said:


> So sorry to hear your bad news chrissie.
> You are not alone in this situation as Alpha bank are withdrawing mortgage offers from many people and I think it will be some time before things get any better.
> I do hope you manage to find some way around it.
> 
> Regards Veronica


thanks lets hope all will be ok other wise we will in breach of contract and then we are in the s..t


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## Rich & Jules (Apr 5, 2009)

*Mortgages in Cyprus*



chrissie said:


> thanks lets hope all will be ok other wise we will in breach of contract and then we are in the s..t


What a nightmare. Sorry to hear that. I also have an issue, which I am losing sleep over. I agreed to purchase a holiday home from a well know developer in Cyprus. I was happily organising my mortgage when I had the shock of my life that I can only take a mortgage with the Alpha Bank as they have bankrolled the development.....nowhere in my contract of sale does it say I do not have the freedom to choose my own mortgage product.......I feel like I have been conned because as you can imagine the Alpha Banks margins are pretty high. I do have a solicitor in Cyprus but have a suspicion he is also in on this scam...


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## theresoon (Apr 11, 2008)

Rich & Jules said:


> What a nightmare. Sorry to hear that. I also have an issue, which I am losing sleep over. I agreed to purchase a holiday home from a well know developer in Cyprus. I was happily organising my mortgage when I had the shock of my life that I can only take a mortgage with the Alpha Bank as they have bankrolled the development.....nowhere in my contract of sale does it say I do not have the freedom to choose my own mortgage product.......I feel like I have been conned because as you can imagine the Alpha Banks margins are pretty high. I do have a solicitor in Cyprus but have a suspicion he is also in on this scam...


I would call the developer and discuss this with them. If Alpha is not lending how can you get a mortgage from them. The other issue I would be worried about here is the financial stability of the developer- why else would they do this otherwise? Another thing you can do is have the bank who is working on your mortgage look into this. I am sure they wouldn't want to lose you as a customer.


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## Rich & Jules (Apr 5, 2009)

theresoon said:


> I would call the developer and discuss this with them. If Alpha is not lending how can you get a mortgage from them. The other issue I would be worried about here is the financial stability of the developer- why else would they do this otherwise? Another thing you can do is have the bank who is working on your mortgage look into this. I am sure they wouldn't want to lose you as a customer.


I have spoken with the developer. The Alpha is lending.....but at high margins. I think the devloper is stable. I think they have borrowed the money from Alpha at lower margins and in return the buyer ie me has to take the mortgage with Alpha. Put simply, it's as if I am subsedising the devlopers loan. The fortunate position I am in is that the developer failed to draw down at different stages and completed the property. If I walk now I think I leave them in a difficult position to sell yet another property. This puts me in a good bargaining position but I really need to know if a developer can force you to take a mortgage with only one company. <snip>


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## Veronica (Apr 5, 2008)

Rich & Jules said:


> I have spoken with the developer. The Alpha is lending.....but at high margins. I think the devloper is stable. I think they have borrowed the money from Alpha at lower margins and in return the buyer ie me has to take the mortgage with Alpha. Put simply, it's as if I am subsedising the devlopers loan. The fortunate position I am in is that the developer failed to draw down at different stages and completed the property. If I walk now I think I leave them in a difficult position to sell yet another property. This puts me in a good bargaining position but I really need to know if a developer can force you to take a mortgage with only one company..



It is not that the developers can force anyone to take a mortgage with a particular bank nor is it the fault of solicitors. It is also not a matter of a scam.
The problem is that if the developer has money owing on the land other banks won't lend on it without high mark ups to cover themselves.
Unfortunately another problem at the moment is that the banks here have seen what has been happening in the UK with so many people suddenly unable to pay their mortgages and they are covering themselves to make sure they don't get into the same mess that so many British banks are in now.
On top of that is the weakness of the sterling against the Euro which makes mortgages here seem more expensive.
When the Euro first came into being and the UK decided to keep sterling many people, including myself foresaw that this sort of thing could happen and it is now coming back to bite the British public.

Veronica


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## Rich & Jules (Apr 5, 2009)

Its because it would have a knock on effect in terms of the revolving credit facility that the devoper has with Alpha for the funding of this development through to completion and probably other sites too. ie...Alpha bank roll the devloper on this development and others and the more properties they(alpha) have under their wing the more security they have against the developers borrowings. Part of the deal between the developer & Alpha probably involves the kick backs for back to back financing and fees generated around this.

As I basically provided a deposit in euro's two years ago, I could be in a position to pull out, receive a refund and and end up making a healthy margin on my sterling euro exchange. I may then go and purchase a re-sale where I am able to arrange my own mortgage...


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## Rich & Jules (Apr 5, 2009)

It doesn't get around the fact is that it was never stipulated in contract that I can only get a loan from the Alpha Bank which I believe is not a good practice. I would say it borders on deception.....


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## ZFour (Apr 11, 2009)

chrissie said:


> hi well what can i say alpha bank is not lending money . we did have an a proved mortgage with them but now we dont we are up a creak without a paddle . i just wont to cry. im sorry i dont know what to say . we just wont our apartment in paralimni . talk soon. sorry:



Hi Chrissie

You still have several options. Have you contacted Laiki or Bank of Cyprus?

Another route you could try is a Swiss mortgage (?). I remember when we purchased the developer mentioned a Swiss mortgage as the rate was quite good. I don't know how this works but you could try contacting Conti Financial Services in the UK and see what advice they give you.....all is not lost.

Best of luck


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## chrissie (Feb 20, 2008)

*bank*

hi thank you . we have a mortgage now with cyprus bank paralimni . thay were so helpfull and so good . moneys in the bank and paid out the same day so the apartment is ours. thank you once again




QUOTE=ZFour;126288]Hi Chrissie

You still have several options. Have you contacted Laiki or Bank of Cyprus?

Another route you could try is a Swiss mortgage (?). I remember when we purchased the developer mentioned a Swiss mortgage as the rate was quite good. I don't know how this works but you could try contacting Conti Financial Services in the UK and see what advice they give you.....all is not lost.

Best of luck[/QUOTE]


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## Veronica (Apr 5, 2008)

ZFour said:


> Hi Chrissie
> 
> You still have several options. Have you contacted Laiki or Bank of Cyprus?
> 
> ...


Cyprus banks are no longer giving swiss mortgages. This may change again in the future but for now you can only get Euro mortgages. However there is talk that some banks here may offer Sterling mortgages.

Things have changed dramatically over the past few months and are changing all the time.


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## ZFour (Apr 11, 2009)

Veronica said:


> Cyprus banks are no longer giving swiss mortgages. This may change again in the future but for now you can only get Euro mortgages. However there is talk that some banks here may offer Sterling mortgages.
> 
> Things have changed dramatically over the past few months and are changing all the time.


So could I convert my mortgage from Euro to Sterling?


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## Veronica (Apr 5, 2008)

ZFour said:


> So could I convert my mortgage from Euro to Sterling?


Possibly once they are available


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## ZFour (Apr 11, 2009)

Veronica said:


> Possibly once they are available



Thats very interesting - I suppose if I converted (for example) now with the exchange rate being so poor wouldn't I end up paying more? I'm not sure how that would work..it could be worth waiting untill sterling is a little better..


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## Veronica (Apr 5, 2008)

ZFour said:


> Thats very interesting - I suppose if I converted (for example) now with the exchange rate being so poor wouldn't I end up paying more? I'm not sure how that would work..it could be worth waiting untill sterling is a little better..


As from today (Monday 13th April) The National Bank of Greece in Cyprus is giving Sterling Mortgages at 3.75%.


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## ZFour (Apr 11, 2009)

Veronica said:


> As from today (Monday 13th April) The National Bank of Greece in Cyprus is giving Sterling Mortgages at 3.75%.



Thanks, do I need to add 1.25% (Euro Bank) to the 3.75% to give me a reflection on costs....sorry to ask!


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## Veronica (Apr 5, 2008)

ZFour said:


> Thanks, do I need to add 1.25% (Euro Bank) to the 3.75% to give me a reflection on costs....sorry to ask!


Sorry I am afraid I am not sure.
I only know that the bank said they are giving sterling mortgages at 3.75%.
Whether there is anything else to go on I cant say but I do know that it is only for people who are living and earning in the UK therefore earning in sterling.
This is to try to get around the weka pound against the euro.
I also beleive that the offer does not apply to all developers properties but it was offered to clients of ours today because the developer is well respected by the bank.
Every case is different so you need to make enquiries yourself.


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