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Essential information for buying properties in Malta

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Essential information for buying properties in Malta Powered By Docstoc
					A guide to Maltese mortgageas
Mortgages are available in Malta, Gozo & Comino

Eligibility and criteria

     •    Loans are available as Euro mortgage only
     •    Repayment mortgage only
     •    The maximum loan to value for a purchase under €600,000 is 90%
     •    The maximum loan to value for a purchase over €600,000 is 80%
     •    Remortgages are not available
     •    The maximum term of any mortgage is 30years (to age 65 maximum)
     •    There is no minimum or maximum loan

Affordability

To qualify for a mortgage in Malta, a calculation is used to establish whether you can afford to maintain the
mortgage repayments. This will automatically happen when you complete our enquiry form and we will not
charge you for this service.

Your existing liabilities, including your UK mortgage or rental payments, loan, credit card payment and
maintenance are taken into account, together with the proposed Maltese mortgage payments. All this must
not typically exceed 30% of your monthly gross income. For example if your net joint income is £2500, 30%
of this equates to £750. If your only liability is your current UK mortgage payment of say £300 per month,
this would leave a balance of £450 for your Maltese mortgage repayment.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under
Eligibility and criteria.

Proof of income requirements

If you are employed:
     • Your last three months payslips
     • Your latest P60 and/or employers reference
     • Your last 3 months personal bank statements

If you are self employed
     • Your last two years audited accounts & last two years tax returns.
     • Your last 3 months personal bank statements.

It is a requirement of the lender that you have adequate life assurance to ensure that the mortgage is repaid
in the even of death.


For our latest rates and to see the different types of Maltese mortgages on offer, please visit our website or speak to one of our
advisers. Our ‘quick quote’ calculator on our website will enable you to find out how much your monthly payments will be or
complete our online enquiry form to receive an Approval in Principle certificate and quotation.


 PLEASE NOTE THAT AS THE LOAN IS SECURED ON THE OVERSEAS PROPERTY IT IS NOT COVERED BY THE UK CONSUMER CREDIT
                                    ACT OR THE FINANCIAL SERVICES AUTHORITY.
Essential information for buying properties in Malta



Buying property abroad is not necessarily the same as buying in the UK, there is other essential information
you need to be aware of both before and during your property purchase.


•   It is of paramount importance to seek independent advice from an overseas solicitor.

•   You need to ensure that you will have full title to the property on completion and that you have the
    appropriate documents available for the lender.

•   Before signing the sales contract, the bank will require a copy of this document to be forwarded with
    the relevant application form. However you are able to sign this contract with the clause “subject to
    mortgage finance” as the contract, once signed is legally binding, and you may have to forfeit any
    deposit monies paid.

•   You should check with the estate agent and/or your lawyer that you are aware of the costs charged by
    legal and Government authorities for buying a Maltese property. The solicitor may be incorporating
    costs for assigning the mortgage within his charges, along with the title deeds to the land registry. You
    should establish the actual cost of these before proceeding with a loan application. The lender will also
    have their own legal costs for assigning the loan, the cost of which they will normally advise you when
    they issue the mortgage offer.

•   If you are planning to use a property for rental purposes, the property must have a swimming pool.

				
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posted:4/26/2011
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