PKO Bank Polski (UK)
PKO BP Mortgage Offer
1. Your Mortgage offer is directed to which groups of people
Our mortgage offer is directed at individual clients in the UK. In principal, the clients should be residents in the UK, regardless of their nationality (i.e. Polish, British, other). The clients should be employed or self-employed. On the individual basis, we can also consider the applications from the clients who run LTD companies and receive income in the form of dividend.
2. Is there any other Polish Bank in UK with such offer or similar service
Apart from PKO BP, there is one more Polish bank in the UK, which offers mortgage loans for Polish properties, namely mBank. It should be emphasised though, that only holders of Polish passports can apply for a mortgage with mBank London office. In case of PKO BP, as already mentioned, this is not the case, as our product is offered to any national residing and working in the UK. Another important difference between PKO BP and mBank is that we offer other products apart from the mortgage loan. At the moment our offer includes the mortgage loan, Superkonto current account in PLN, and savings account in GBP. We hope to extend our offer in the near future.
3. What is so special about PKO BP UK mortgage offer
There is a number of advantages to be named. First, as already indicated, the mortgage offer is available to non-Polish customers in the UK. Also, we are very flexible when it comes to the form of employment of our customer (e.g. we regularly sign mortgage agreements with self-employed clients). Second, we accept all documents in English, so no translations are required. Third, we offer competitive LTV, and so currently we offer 100% LTV for mortgages in PLN. Fourth, we offer full customer support in London (face-to-face), and so all the formalities regarding the mortgage can be dealt with in London, which means the customer does not need to travel to Poland. Fifth, we benefit from a large network of branches in Poland and so in case of joint applications where one of the borrowers resides in Poland, the process can be divided between Poland and the UK. We always receive the necessary support from our Polish branches. Sixth, the customer can file an application to open Superkonto account with our London branch, which can be then used to set up Direct Debit to pay off the mortgage. This list is far from exhaustive.
4. What sort of criteria is consider to qualify –obtain your mortgage offer
The customer must have sufficient creditworthiness, which is calculated by our customer advisers based on the customer’s income and liabilities. The customers with sufficient creditworthiness must then obtain positive credit score. Needless to say, the customer must provide sufficient security for loan repayment (i.e. security on the property in Poland) and naturally the customer must have full capacity to enter into legal transactions.
5. What’s the minimum level of income and from how long back must be presented
There is no minimum income, as it would depend on the amount of loan that the customer applies for, as well as his/her liabilities, and some other criteria. For customers who are employed, we normally assess the income from the last 3 months. For self-employed, it would depend on when the last Tax Return was filed.
6. Can the application be joint with none relatives ,how many people can apply for one mortgage
Yes, the application can be joint with none relatives. There can be a maximum of 6 applicants for 1 mortgage, but those 6 applicants cannot constitute more than 3 households.
7. Is there any age restriction and for how long is the mortgage
The mortgage can be issued for a maximum of 40 years. The applicant should be no older than 70 years at the end of mortgage re-payment.
8. What is the most preferential currency that mortgage can be issued
The decision on mortgage currency belongs to the customer.
9. What sort of deposit the applicant must have
In case of PLN mortgage, no initial deposit is required. In case of GBP, CHF, EUR and USD mortgages, the initial deposit of 25% is required.
10. What type of property the mortgage offer covers
There are multiple purposes, but the most common are the purchase, construction, or completion of construction of any residential property in Poland. This includes a purchase of the plot designated for development. Also, the mortgage can be spent on finishing works, fit-out, renovation, or modernisation of the property. Among other important purposes is the repayment of another mortgage loan granted in the past. This list is not exhaustive. It should be emphasised that the mortgage can finance one property, but be secured on another.
11. Can the purchase property be for ” buy to let” investment
Yes, the property financed by our mortgage can be let.
12. How quickly the mortgage offer can be accept in principal and overall timetable procedure
The creditworthiness of the customer can be calculated within 10 min by our customer adviser in London. This, however, only assesses how much the customer should be able to borrow with us. Once the mortgage application is submitted, the credit decision is usually made within max. 2 weeks.
13. Do I have to present and sign necessary Bank papers in Poland or I can do in your London branch, how many times I have to visit your Branch
All the documentation can be signed in London branch, so the customer does not have to travel to Poland. We can accept applications by post or even by email if all the originals are presented to us at the time of signing the credit agreement by the customer in London branch. Thus up to the moment of the signing of the agreement the customer may limit his visits to the branch to just one.
14. Will I have a personal assistance from your staff members from the start to finish once the application is in place
Absolutely. Whenever possible you will be assisted by your personal customer adviser. In case your adviser is not available, your questions can be answered by another customer adviser.
15. If I change my mind do I have option to cancel the mortgage application
Yes, you have an option to cancel your mortgage application.
16. If I want to finish the mortgage –pay off quicker than in the contract ,will I have to pay any penalties
During the first 2 years you will be charged 0.5% of each overpayment. After 2 years there is no fee charged for overpayments apart from the last overpayment, which is charged at 1.5% (not less than 200 PLN). If you want to pay off your mortgage by one-off payment (regardless of when the overpayment is made), you will be charged only 1.5% (not less than 200 PLN).