In Italy, it is generally possible to borrow up to about 50/60% LTV. You can either approach an Italian bank directly once you have found the property you wish to buy, or our agents can assist with a local mortgage (again, once you have found a property you wish to buy), or you can contact our broker in advance and be pre-qualified for a mortgage before you have found the house. Using a broker is much easier as they have contacts with many Italian banks and can obtain the best terms for you. They also can do everything for you in English. There are broker fees to pay of course. Broker details
If you are not able to obtain an Italian mortgage through a bank then there are several alternatives for financing your purchase;
1. Raise the finance by borrowing against an asset you own in another country and paying cash for your Italian property.
2. Buy a property where the developer offers finance.
3. Find a property where the private owner is willing to accept a deposit now and have the rest paid off in instalments over a number of years, typically 2 – 3.
The agreement is contracted through a notary and is know as a ‘purchase deed with retention of title’ and the property only legally changes hands (although the buyer can occupy the property) once the final payment is made. If the buyer defaults on any instalments, they lose anything paid so far and must return the property to the vendor.
Not many vendors are open to this but some are. Let us know what sort of property you are looking for and your budget and we will let you know of any properties where this is a possibility.
Just drop us a line – [email protected] – if you require any further information.