Via Doménico Correale, Nº 10, 89048 Sidéreo (RC) ITALY
Telephone & Fax: (+39) 0964 388431      email: galluzzovincenzo@libero.it

ITALIAN MORTGAGES EXPLAINED

We are one of the foremost mortgage brokers in Southern Italy and have substantial experience in obtaining Italian Mortgages for non Italian residents. We are a multi-lingual brokerage and can offer a wide range of mortgage products that have been specifically sourced for Non Italian Citizens.

There are various products available to you which incorporate Interest Only and Capital Repayment mortgages. Up to 80%* mortgages are available on the purchase price of the property or valuation, whichever is the lesser amount, at varying terms up to 40 years and with a maximum age limit of 75 years. The terms offered are dependent upon which lender is chosen and are subject to status.

There are distinct advantages of using the facilities that have been established which include:

l mortgage interest linked to the Euro, currently 1.00%

l potential to pay off higher interest debt in your homeland

l obtain low interest funds to make further investments or just to release cash

l mortgage applications administered locally to ensure timely completion

l no language problems since all applications processed by bi-lingual staff

l close collaboration with your Lawyers to ensure everything is in place for the Notary completion

l no redemption penalties for paying off part or the whole of the mortgage early, except for interest only mortgages where a penalty will be applied for closing the mortgage within 5 years.

There are specific products available for “investors” where the maxim is “invest as little as possible for the maximum possible gain.” Investors can enjoy up to 25 year Interest Only mortgages, at variable interest rates, with partial capital repayment at convenient intervals. The monthly mortgage payment consists of interest only, while the capital may be repaid at your convenience over a maximum 25 years period. This mortgage is recommended for anyone who is self employed or whose income fluctuates. These are very effective schemes for the investor who wants to build a solid property portfolio in the shortest possible time.  

Minimum capital Repayments for Interest Only Mortgage

An “interest only” mortgage, at current interest levels, will cost around €3.00 per month per €1,000 of loan.

Repayment mortgages are available in a variety of products. You will be able to obtain fixed interest rates for the full term, variable rates, and mixed rates from a variety of lenders who are used to dealing with non Italian residents. The maximum term for a repayment mortgage is 40 years.

As with all mortgage lending there are specific guidelines to adhere to, including a list of documents that must be submitted with the mortgage application, to include copy payslips, last year tax return, P60, credit report, copy bank statements etc. The affordability rule of the main recommended lender is that any loans or mortgage repayments, including your new Italian mortgage, must not be more than 33% of gross income. Generally, providing this rule is met then there should be no problem in getting the mortgage application accepted.

The Italian lenders will not accept a mortgage application until 3 months before completion date of the property. It is normal practice for us to make with the client before this date to set the mortgage application process in motion.

May 2009