Mortgages

Guide to Buying Abroad in Italy

Overseas mortgages Italy is a dream for all round tourism. It has the warm sunny beaches. Temperatures can reach above 30 degrees centigrade in the summer months. There are endless opportunites to offer culture vultures the best in both modern and ancient history and some of the most popular skiing resorts in Europe. Italy is governed by the Eternal City of Rome, in the region of Lazio. Greater Rome has around four million inhabitants.

With its relatively cheap cost of living, low property prices and friendly people, Italy is a firm favourite for Brits when looking for a second home.

 
Mortgages for Italian properties

Once you have found an Italian property

Unfortunately there are no non status mortgages available and proof of income will be required. On agreeing the sale price of the property the next step is to sign a contract. At this stage it is only a preliminary contract and a deposit will need to be paid.

The deposit is usually around 20% although it can be for as little as 10% or as much as 30% and it can be less than 10% if it is a new build. If you do not proceed with the sale then as in the UK, your deposit will be lost. Unlike in the UK, if the vendor withdraws then the deposit paid back to the buyer is doubled.

On completion of the sale, the fees and the balance of the purchase price are paid to the solicitor. At this point both parties sign the contract which involves the Deeds to the property.

Home loans are in Euros and at a minimum of EUR75,000 and as with UK home loans are for terms ranging from 5 to 25 years but should all be discharged by the time the borrower reaches the age of 70.

As with almost all properties purchased anywhere abroad, the Italian lenders will not include any prospective rental income when calculating the loan. The risk is that you will not be able to rent out the property on a regular basis. The general rule of thumb is that lenders will expect you to be left with around 65% of your monthly salary after you have met all your financial obligations. These include any existing rent or mortgage repayments, loans and maintanance payments.

If you would like more information about buying in Italy please click the following link for buying criteria in Italy.

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