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Italian Mortgages for purchasing a property in Italy Currently only covers the Greek/Southern Italy residential property area.
If you are considering purchasing a property in Italy, Italian Mortgages are available for the majority of Nationalities for either House Purchase or re-financing for other purposes including Home Improvements.
Example:
Please note, that there are no non-status/self-certification Italian mortgage facilities available in Italy (although renting out your property is permitted), all Italy Mortgages need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips & copies of your latest P60/Employer's Reference together with copies of your last 6 month's Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last three years Audited Accounts & copies of both your last 12 month's Business and last 6 month's Personal Bank Statements will be required on application. the Lenders will NOT take into consideration any proposed Rental Income from the property for Italian mortgage purposes/repayments. Your loan is based on your joint net take home pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance (ie: Divorce) payments together with your proposed Italian mortgage payments must not exceed 35% of your net monthly income.
Example: Net joint monthly income £ 2,500 times 35% of that figure is £875 minus existing monthly mortgage payment £300 - No other liabilities. This leaves a balance of £575 for a proposed Italian Mortgage payment.
PLEASE ENSURE THAT YOU WILL HAVE FULL TITLE TO THE ITALY PROPERTY ON COMPLETION AND THAT THE APPROPRIATE DOCUMENTS ARE AVAILABLE FOR THE LENDER. WITH NEW PROPERTIES, FIND OUT THE DATE THE PROPERTY IN ITALY WILL BE REGISTERED IN YOUR NAME(S), AS THE LENDER CANNOT LEND ON THE SECURITY OF THE PROPERTY UNTIL IT HAS BEEN REGISTERED.
WHILST ALL REASONABLE STEPS WILL BE TAKEN TO SECURE THE ITALIAN MORTGAGE ON YOUR OVERSEAS PROPERTY AS SOON AS POSSIBLE, DELAYS MAY OCCUR DUE TO THE ITALIAN LEGAL AND ADMINISTRATION SYSTEM. CHECK WITH THE ESTATE AGENT/LAWYER THAT YOU ARE AWARE OF THE COSTS CHARGED BY THE LEGAL & GOVERNMENT AUTHORITIES FOR PURCHASING A PROPERTY IN ITALY, NOTING THAT THE LENDER WILL HAVE THEIR OWN LEGAL COSTS FOR ASSIGNING THE ITALIAN MORTGAGE (THE COST OF WHICH THEY WILL NORMALLY ADVISE WHEN THEY ISSUE THE ITALIAN MORTGAGE OFFER). IT IS ESSENTIAL THAT YOU TAKE THE APPROPRIATE INDEPENDENT LEGAL ADVICE BEFORE SIGNING THE SALES CONTRACT OR PAYING A DEPOSIT, IF PURCHASING A PROPERTY IN ITALY, AS WOULD BE EXPECTED IF YOU WERE PURCHASING IN YOUR OWN COUNTRY. THE BANK WILL REQUIRE A COPY OF THIS DOCUMENT TO BE FORWARDED WITH THE RELEVANT APPLICATION FORM. HOWEVER YOU ARE ABLE TO SIGN THIS CONTRACT WITH THE CLAUSE "SUBJECT TO ITALY MORTGAGE FINANCE" AS THE CONTRACT, ONCE SIGNED IS LEGALLY BINDING. PLEASE BE AWARE THAT THE LAWYER/NOTARY MAY BE INCORPORATING WITHIN HIS CHARGES, COSTS FOR ASSIGNING THE ITALIAN MORTGAGE AND YOU SHOULD ESTABLISH WITH THE LAWYER/NOTARY THE ACTUAL COST BEFORE PROCEEDING WITH A ITALIAN MORTGAGE APPLICATION. IT IS ADVISABLE TO ARRANGE YOUR MORTGAGE IN ITALY BEFORE AGREEING TO PURCHASE A ITALIAN PROPERTY.
A ITALIAN BANK ACCOUNT WILL BE REQUIRED. ALL ITALY MORTGAGES HAVE TO HAVE A SUITABLE LIFE ASSURANCE POLICY ASSIGNED TO THE LENDER. ITALY PROPERTIES CAN BE PURCHASED EITHER INDIVIDUALLY OR IN JOINT NAMES. ITALIAN LENDERS WILL REQUIRE YOU TO VISIT ITALY FOR AN INTERVIEW PRIOR THE RELEASE OF FUNDS.