Italian mortgages and how they work
All mortgages are full status and proof of income and outgoings will
be required. Italian mortgages can be arranged for acquisition, renovation
A deposit of 30% of the purchase price is required and you will also
be liable for solicitor's fees. Euro mortgages are available, and the
minimum loan amount you can borrow depends on the lender you use. Mortgages
are generally Repayment loans and can be taken over a 5-25 year term,
although some mortgage lenders will be happy to provide Interest Only
loans. All mortgages should be fully repaid by the age of 70 and life
cover is required. The mortgage is secured on the property in Italy.
Italian lenders assess eligibility for a loan on the applicant's ability
to service the loan and not potential rental income from the property.
The general guideline is as follows: of an applicant's net income 35%
should cover existing outgoings and the monthly repayment on the Italian
loan. If you are self-employed income is assessed as the average of the
last three years' net income. Rental & investment income will also
be considered. If employed a lender will base your income on your payslips
and the amount that is credited to your account monthly. Outgoings considered
are liabilities such as mortgage/rent in the UK, personal loans and maintenance
For example - If you have a net monthly income of £2000 with a
UK mortgage of £500 and no other outgoings. Taking into account
35% of the income, that is £700, a borrowing with a monthly repayment
of £200 could be considered.