Arranging your non-resident mortgage in Italy

Once you have found a property you wish to purchase, you must sign the reservation agreement. The preliminary agreement or compromesso is a binding legal document obliging both parties to complete the purchase at a future specified date in the offices of a local Notary Public. At this stage any deposit you have put down will be forfeited if you pull out of the purchase. If the vendor pulls out, they must pay you twice the sum they received as a deposit. If the transaction reaches completion, the deposit is taken as a down payment.

You should stipulate that the purchase is conditional on you obtaining a mortgage, a satisfactory survey, and that the property is free from all charges and complies with building regulations.

Completion must be formalised by a local Notary Public who draws up the sale deed, registers it with the land registry and pays all taxes and duties on your behalf. Once you receive your offer of mortgage in writing you must sign and return the papers to the lender dated the day you receive them. You will normally, then be able to complete on your purchase after a cooling-off period of around 10 days.

Lending is based on affordability and does NOT allow for rental income from the property. All existing liabilities including any mortgage/rent payments, personal and bank loans and any maintenance (ie. Divorce) payments will be taken into consideration on the financial assessment.

Mortgages need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last six month's payslips & copies of your latest two P60's together with copies of your last 6 month's Personal Bank Statements. Alternatively if you are self-employed - copies of your last two to three years Audited Accounts & copies of both your last 12 month's Business and last 6 month's Personal Bank Statements will be required on application.
 

Properties Considered: Residential Properties for purchase, re-mortgage, self-build, renovation, equity release, or investment purchase

Types of Mortgage: Repayment & Interest Only, Minimum loan amount - €50,000 or equivalent. Maximum TBA, but must not exceed 70% of valuation or purchase price (whichever is the lower). Fixed or Variable Rates

Term: Maximum 10-30 years up to age 75
Currency: Euros
Current Variable Interest Rate: from 4.50%