The range of Italian mortgage products available to non-residents is relatively small and the lending criteria are very strict.
Italian mortgage products available on the international market are characterized by a lower LTV than for resident borrowers and are usually subject to very stringent conditions on the quality, type and location of the property that can be mortgaged.
Italian mortgage products available on the Italian domestic market have a higher LTV possibility though they are usually accompanied by stricter tests of financial status. They have the advantage of more relaxed conditions on the quality, type and location of the property that can be mortgaged.
Italian Mortgage Products for Non-Residents
Typically these Italian mortgage products have the following characteristics:
- LTV – up to 80%.
- Maximum term 25 years or until the borrower reaches the age of 75.
- Can be used for Italian property purchase and Italian property purchase including renovation works.
- Cannot be used for Italian construction projects, renovation projects, refinancing and equity release.
- Borrower needs to have a strong and stable financial profile which must be verifiable through proof of tax paid on income, a low debt to income ratio (<35%) and fully documented and transparent finances.
- There are usually other restrictive conditions.
These Italian mortgage products have the advantage of the Italian mortgage application being processed in English.
You will be required to produce 3 months bank account statements and 2-3 years financial accounts if the borrower is a director or self-employed.
The disadvantage of these Italian mortgage products is that they carry a higher interest rate.
The lending conditions applied to these mortgage are very strict and few borrowers can meet the lenders requirements.
Italian Mortgage Products for Residents
Typically these mortgages have the following characteristics:
- LTV – up to 60%.
- Maximum term 25 years or until the borrower reaches the age of 80. For joint mortgage the youngest borrower’s age may be used as the basis for calculating the mortgage term.
- Can be used for Italian property purchase, Italian property purchase including renovation works, construction projects, renovation projects and Italian mortgage refinancing.
- Cannot be used for Italian equity release.
- Borrower needs to have a strong and stable financial profile which must be verifiable through proof of tax paid on income, a low debt to income ratio (<35%) and fully documented and transparent finances.
- There are normally other restrictive conditions but these are not normally difficult to meet.
- Property taxes on purchase are lower for property brought as a main home.
These Italian mortgages have the disadvantage of the Italian mortgage application being processed in Italian, thus they require all supporting documentation to be provided to the bank in certified Italian translation.
It is not unusual for an Italian bank to require 24 months bank account statements and payroll slips and 4 years financial accounts if the borrower is a director or self-employed.
The advantage of these Italian mortgages is that they charge a lower interest rate.
The lending conditions attaching to these mortgage are less strict and most financially sound borrowers can meet the lenders requirements.
Italian Rent to Buy
Rent to Buy is now the cheapest, most convenient and fastest solution for financing the purchase of Italian property: No bank, no bureaucracy just a stress-free experience leading to your Italian dream property. To find out how rent to buy can hepl you acquire an Italian property see our Italian Rent to Buy section.
How We Work With You
We use a personalized three stage process to to ensure we can offer you the best mortgage product for your personal needs and circumstances.
Understanding your mortgage needs
The first stage in the process is about getting to know you and working with you to establish exactly what mortgage product will suit your personal needs best.
Initially, we ask you to supply us with a picture of your personal circumstances via our Italian Get A Quote form.
From this starting point we work with you to develop a crystal clear picture of exactly what mortgage product will suit your needs best.
Italian Mortgage Research
The second stage in the process, Italian Mortgage Research, is to fully research the whole market to identify the best current mortgage products and offers.
Because we ensure that we are always up-to-date on the best Italian mortgage products, we build for you an individually researched Italian mortgage research report listing the the top Italian mortgage offers currently available that match your needs.
Whilst we can’t guarantee that any Italian bank will accept your Italian mortgage application, we do guarantee that we will tailor our research to only include Italian mortgage products which are appropriate to any personal financial profile you have provided to us.
Italian Mortgage Submission
The final stage in the process, Italian Mortgage Submission, is the submission of your mortgage application to the bank with the best mortgage product for you.
We have three options, depending on your needs and your personal circumstances:
- Direct submission of your mortgage application to the bank central underwriting office.
- Direct submission your Italian mortgage application to the Italian bank branch nearest to the Italian property you wish to purchase.
- Proxy submission of your application via a Notaio.