Saturday, March 7, 2009

Mortgages in Calabria

I know many of you will be looking into what mortgages are available currently and in a previous post I gave you an idea of cost. Following on from that I thought I would give you a brief synopsis of the requirements and a basic outline of whats available. I will be going into this in more detail over the coming weeks.

Mortgage Criteria
Mortgages will be in Euros and are secured against property. Mortgages in Italy are full status, so you will need to demonstrate income.
80% of the purchase price is the maximum available. Italian lenders look at how easily you can meet your monthly payments, as a guideline, your outgoings as well as your repayments on your new mortgage should not exceed 35% of your gross monthly income.Rental income you receive can also be considered.

Available Mortgages
You can mortgage both new and old property. The property must be registered at the land registry and be deemed habitable. Please note that the criteria for ‘habitable’is set by the local authorities and without this certificate a mortgage will be refused.

Types of mortgages available
Both interest-only and repayment mortgages are available, on a variable or fixed-rate basis, or a combination of both.
Terms can be from 5 to 40 years, however loans must be repaid by the age of 85.

Here is what you will need to produce proof of -
identity & residenceincome & outgoingsBank statementsProperty details

How long will it take?
An agreement in principle can take approximately five working days. However, for loan amounts in excess of €750,000 this may take longer.

Life Assurance
Not compulsory in Italy

Building insurance
The lender will insist you take this out with their recommended provider, look into the specifics it covers, because it will usually cover the absolute minimum

Italian Bank Account
You will need to open an Italian bank account , from which your mortgage repayments will be debited.
Keep checking for more information on mortgages in Calabria, or simply add your email address at the right to get posts each time they are issued and remember do your research before proceeding with any financial product.

1 comment:

  1. Thank you for this terrific information. My husband and I are contemplating purchasing something in Calabria. We live in New York so any information is so much appreciated. I will keep watch on your blog.

    Thanks again.