Dear Biker200

When it comes to lending the German banking system is a bit old fashioned. That being said is certainly possible to get a mortgage if you are a non-German. We work closely with several mortgage brokers in Berlin to make the process as straight forward as possible.

Unfortunately the banks will not offer the kind of LTV’s you’re used to here in the UK. For single apartments you should work your numbers on 60% LTV. You will probably get more i.e. 65%. Every application is assessed individually. All German mortgages are capital repayment with 5-10 year fixed rates between 5%-5.5% and amortisation (repayment rate) approximately 2%.Do also remember the smallest mortgage the bans will lend is 50K euros therefore making the smallest purchase (taking 60% LTV) 83,333 euros. You will be able to get a mortgage over multiple purchases if made in the same building at the same time.

For single apartments we look for the best immediacy of capital growth whilst maintaining a level of rental income so the investment comfortably washes its own face. The areas we have been focusing on for this are Prenzlauer Berg, Friedrichain and Tiergarten. These three are very central with good access to Mitte (where most people work) and have a high density of classic buildings.

These area have extremely strong rental demand, which means that people want to live in these areas (no break through in logic there ). When we see some of the 87% of the population who currently rent move into ownership these same areas should see the lions share of the buying. Owner-occupiers are always the main drive in growth (in urban areas).

I hope this has been of some help to you.

Any more questions please don’t hesitate to fire away.

Kind regards

Andrew Stanley