Mortgages in Italy

Loans on Italian properties are normally available for up to 80% of the valuation, the valuation is carried out by the bank on behalf.

When you have found a property in Italy and agreed a price you must sign a reservation agreement – this is known as the “compromesso” and is a legally binding document obligating both parties to the transaction to complete at a specified date in the future. At this initial stage you also have to put down a 10-30% deposit which you will forfeit is you pull out of the purchase. If the vendor pulls of the contract they must pay double the sum received as a deposit. When he transaction reaches completion the deposit is used towards the total purchase price.

It should also be stipulate from the outset that the purchase is conditional on you obtaining a mortgage for the property.

Typical Italian Mortgage Lender terms:

• Up to 80% Loan To Value
• The currency of the mortgage must match the local currency of the property location or the currency of your main income.
• Borrow up to 5x income
• Currency switching options may be available with certain lenders

For more information, an agreement in principle (AIP / DIP) or to apply for a mortgage contact one of our specialist overseas consultants on 0203 236 1003.