News and Updates:
A variety of finance options are available to non residents. Most mortgage lenders are prepared to lend between 70-80 percent of the property value over a 5 to 30 year term. All Italian mortgages are currently set up on a capital & interest basis with no interest only option available. Fixed and variable rate mortgages are both offered in Italy, with interest rates starting at around 2.5%.
To qualify for a non-resident mortgage, applicant’s will need to be able to prove their income. Most lenders will expect an applicant’s existing monthly outgoings plus the monthly repayment of the new Italian mortgage not to exceed 35 percent of an applicant’s net monthly income. Mortgage options are typically available to applicants up to the age of 75.
Currently mortgage lenders in Italy only allow borrowers to finance their property in euros. Mortgage finance in Italy is generally lower than in most European countries at around 20 percent of the countries GDP (the average in rest of Europe is 50 percent). Recently we have noticed banks are willing to re-enter the mortgage market, albeit on more prudent terms than before the credit crunch. If this continues we expect a wider range of products to become available in 2010.
To find out more information about what Italian mortgage options are available to you please contact us for a free a no obligation consultation.