Property investors thinking of expanding their portfolio to include homes in Bulgaria are being targeted by a new mortgage product from the UK branch of one of Greece's biggest finance institutions.

Piraeus Bank London has launched an interest-only euro mortgage product on Bulgarian property in response to the soaring popularity of Bulgaria as a real estate investment hotspot.

Exclusive to the UK and Bulgaria, the new interest- only product is available for up to ten years.

Many investors are buying properties off-plan "with a view to obtaining capital gain and rental income from tourism once completed".

"Offering a finance product which combines a ten-year interest only period and one which takes into account up to 30% of projected rental income is highly exciting for investors," he added.

The mortgage terms available also include up to 75% loan-to-value, lowest interest rates on Bulgarian mortgages in the UK at 6.5% and repayment term of five to 25 years.