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Italian Property as Security

If you need finance to purchase a property in Italy, then mortgages.co.uk can help, we can give you access to a team of licensed credit rokers, who have over 20 years experience. By using the property you wish to buy, in Italy as security, you could raise a repayment mortgage, depending on your circumstances.

Based upon the valuation or purchase price (whichever is lower) you could be granted a loan for up to 80% of the value of your Italian property (in any major currency), for purchases (or re-mortgages; for home improvements).

There is a minimum loan of £25,000, that has a repayment period of up to 30 years (in Euros), and can be available up to the age of 75. Current interest rates as at 5th June 2003 are from approx 3.00% variable in Euros. Discounted, fixed rate and commercial loans are also available.

The example below, demonstrates a repayment mortgage, in Euros. The cost of a mortgage protection policy has not been taken into account.

Repayment mortgage of approx € 72,500 over a period of 20 years at an interest rate of approx 3.00% = approx € 406.72 capital & interest per month = a total approximate amount payable over the term of € 100,514 including capital, interest, arrangement and survey fees. The income criteria is variable Bank Reference and Employers or Accountants reference if self-employed Existing borrowing in the UK and Overseas will be taken into account ALL ENQUIRIES WILL BE DEALT WITH ON A CASE BY CASE BASIS & ARE SUBJECT TO SATISFACTORY CREDIT STATUS & VALUATION   Please note, that as the loan is secured on the overseas property, it is not covered by the UK Consumer Credit Act or the UK Mortgage Code.

 

Written quotations are available on request.

How much can I borrow & what proof of income is required?

There are no non-status/self-certification mortgage facilities available in Italy , therefore all loans need to be supported by a minimum of, proof of income. If you are employed, you will need to produce; your last three months payslips, P60/employers reference and your last 6 months Personal bank statements. If you are self-employed you will need; copies of your Audited Accounts together with your last 12 months business, and 6 months personal bank statements.

Lenders in Italy will not take into account any proposed rental income from the property that you wish to buy.

Your loan will be based on your personal (or joint) 'net' pay, and is calculated on an affordability basis. For you to be considered by the lenders in Italy ; your total out-goings must not exceed 40% of your net monthly income.

A simple example; if your total net monthly income is £1,000, your total out-goings must not exceed £400: you must have £600 per month for personal spending to be considered.

A guideline for purchasing a property in Italy

•  Ensure that you have full ownership of the property upon completion, and that the relevant documents are available for the lender.

•  With newly constructed properties, ensure that you know the date that the property will be registered to you. The lender cannot lend on the security of the property until it has registered.

•  Due to the Italian legal and administrative system, there may be slight delays on securing your loan, despite the fact that all reasonable steps will be taken to avoid this. So be prepared.

•  Make sure you have researched every possible cost that you may incur, whilst purchasing a property in Italy . Note, you may be charged by the government in addition to the lenders legal costs (the Lenders costs however are usually specified when the Lender offers you the mortgage).

•  Unless you are very experienced in purchasing abroad, it is very important that you seek some sort of legal advice before signing the contract for a property or paying a deposit. The Lender will require a copy of these signed documents together with an application form, however you will be able to sign these documents 'subject to mortgage finance', once the contract is signed it is legally binding, so if you do not state this and the Lender does not wish to do business with you, this could be a huge problem

•  Legal advice may be costly, so ensure that you receive a complete quote, incorporating all costs, before applying for a loan.

•  An Italian account will be required.

•  Loans are available in Euros only.

•  It is advisable that a life assurance policy is set up on all mortgages.

•  Properties in Italy can be purchased by an individual or in joint names.