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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