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Are you tempted by the prospect of buying a property in Italy, but you need financial support? Let’s find out how simple it could be to secure a home loan from Italian lenders - with the help of Property Organiser!
Many people around the world wish to buy an Italian property, either to be used as a holiday home, a buy-to-let investment, or simply the perfect place to settle down after retirement. But how to secure tailor-made financial support to buy your dream home? Is it possible to get a mortgage in Italy? Well, the answer is yes, it may well be possible, and it’s easy to see why so many non-residents wish to buy properties in Italy!
How do mortgages work in Italy?
Italian mortgages are usually capped at around 50% loan to value (LTV), although some lenders will stretch to 70% LTV in specific circumstances (it depends on the type of the property, its location etc).
Why chose an Italian mortgage?
Italian mortgage interest rates are currently among the most competitive in Europe with their 1.70% interest for fixed products and 0.98% for the variable ones.
Eligibility & criteria
All Italian mortgages are in Euros and will be secured against Italian residential property. Italian mortgages are full status and therefore proof of income and outgoings will be required to submit an application to a lender. Italian lenders assess eligibility on the applicant’s capacity to repay the Italian mortgage. As a guideline, the existing monthly outgoings, together with the monthly repayment on the new Italian mortgage, should not exceed 30% of their net monthly income. A percentage of any rental and investment income the applicant receives can also be considered. Mortgage, rent, personal loans, and maintenance commitments are all considered as outgoings.
Italian Mortgage products
Only repayment mortgages are available, on a variable or fixed-rate basis, or a combination of both. Terms can be from 5 to 30 years; however, loans must be repaid by the age of 74. Very interestingly, mortgage products do not have any early redemption penalties.
Documentation required by the lender
Lenders are required to have sufficient documentation proving that the borrower can afford the Italian mortgage repayments and therefore the banks ask for a number of supporting documents. Here is a summary of what will be needed:
An informal pre-approval can be obtained from a lender once all the necessary documentation has been submitted. This takes approximately 10 -15 working days.
Isn’t this easier than you expected? Are you ready for your dreams to come true? Then contact us for your unique property search or visit our website to view some of the properties available in Italy.
Contact us now to be assisted with your mortgage application!
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