international mortgages

malta

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 relevantapplication 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.

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

Please note, that there are no non-status/self-certification mortgage facilities available in Malta (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips & copies of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last three years Audited Accounts & copies of both your last 12 month's Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately in Malta the Lenders will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance (ie: Divorce) payments together with your proposed Maltese mortgage payments must not exceed 35% of your net monthly income.

Example:

Net joint monthly income £ 2,500 times 35% of that figure is £ 875 minus existing monthly mortgage payment £ 300 – No other liabilities. This leaves a balance of £575 for a proposed Maltese Mortgage payment.

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 gross 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 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.

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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