A Mortgage in Italy
In your own country banks may somewhat reticent about lending you money for a property abroad. especially when you're going to leave for good. Le Case di Dorrie can forward you to several Italian banks which can help. We work with the Unicredit Banca, BHW and Woolwich Italy.
In order to obtain a free quote from the banks we need the following information: your age, your annual net income, your assets and burdens. On that basis we can ask for a simple quote.
Le Case di Dorrie can help you with the mortgage application procedure for a flat rate of 1000 Euro (regardless of the outcome of the application). We translate your income and tax documents, take care of all the communication between you and the bank, and go to see the property with the valuer. If you need full translation of the mortgage contract or deeds, we can put you into contact with qualified translators.
Documents necessary for an official mortgage application
Copy of a valid identity paper and fiscal code of each mortgage applicant*.
- Residency certificate (if this exists in your country) and civil status (e.g. copy of marriage certificate).
- Tax declarations of each mortgage taker for the past two years.
- Copies of bank receipts of the last three months.
- Other possible relevant income information.
*If you are married in community of goods (usually not the case in the UK) the property and the mortgage have to be registered on the name of both, so all documents of both partners need to be sent to the mortgage bank.
The bank will contact the owner or his agent to obtain information on the property , like purchase deeds, cadastral extracts, etc.
NB Unlike Northern European banks Italian mortgage banks never grant a full coverage of 100% for the purchase of a property. Before a decision is taken the bank will send a valuer to estimate the value of the property and usually on that basis a 60-80% mortgage will be granted. If you want to know earlier you can pay the valuer to make his estimate in an earlier stage, so you will know how much you will have to pay in yourself.
Which income should I declare to obtain a mortgage?
Our advice to ‘emigrants’ is: apply for a mortgage on the basis of your actual income, so before quitting your job and leaving your home country. Banks mostly look at the past income and not so much future, but if you apply for a mortgage without a steady income you will only get up to 50% of the estimated value of the property you want to purchase.
Finding money for starting a business in Italy
Many of our clients wanting to start a B&B or agriturismo think that they will be able to obtain a mortgage presenting a business plan for the activity they want to start in Italy. Unfortunately, banks in your own country will not be willing to finance a plan abroad, and Italian banks only grant mortgages to private persons on the basis of their income. There is one possibility: in Umbria there is a Regional body, Gepafin which takes business plans into consideration and may be willing to be a business' garantee towards a local bank, for 50% of the mortgage. This applies only to companies started in Italy and plans presented in Italian.
NB. Always try to include a condition in your proposal to buy a property (“subject to written approval by the mortgage bank”), and don’t pay huge down payments upon signing the preliminary contract only on the basis of a verbal mortgage approval.
NB. Le Case di Dorrie limits itself to bringing the bank and the client in contact with each other and accepts no liability for damage.
- The Banca dell’Umbria now (September 2004) applies a very low interest rate: 2.95% for the first year, then the rate will be established (fixed or variable) for periods of three years. Minimum duration before the mortgage is granted: 40 days. Maximum coverage for purchase: 60%, for restoration: 100% in phases and on the basis of a building contract.
- BHW is a German Savings bank with low fixed rates (4,25%), or mixed rates. The offer mortgages to private persons, not to businesses
- Woolwich Italy offers several different packages.
Click here if you want more information about mortgages.