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PostPosted: September 16th, 2010, 12:10 pm 
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Joined: September 16th, 2010, 11:58 am
Posts: 7
Location: Hessle, East Yorkshire.
Hi

I have recently been contacted by a client buying in Calabria who informed me of this forum as our company had been recommended to him by Paul McDonnell of Calabrian Management Services. Paul's company provides property management services and we recommend our clients to him as they are reliable company and provide a good service to our clients.

We are currently helping a number of Paul's clients in securing mortgages

I thought it might be of use to detail the current state of play in securing mortgages in Italy.

Some banks will not work with intermediaries like ourselves and expect clients to complete the application form themselves and collate all the necessary information and paperwork. This is fine if you are confident with paperwork but can be a time consuming process and we have had numerous clients that have then approached us as they were eventually declined.

Overseas lenders calculate what you can borrow based upon affordability. Each lender has its own set of terms but in general they all work to similar guidelines. These guidelines hinge in the main on two questions:
• Can the clients prove their income?
• What is the client’s debt to income ratio (DTI)?

If you cannot prove your income then the mortgage will be declined. Overseas banks confirm affordability and have never embraced self-certified mortgages.

Proof of income if employed will be via payslips and end of year tax figures and if you are self-employed then by providing two years accounts. Most lenders work on this debt to income ratio. This is effectively, the percentage of income, which is used to service debt. This ratio differs from country to country and from lender to lender.

Example

In Italy, for example, the DTI tends to be 33%. So in the case of a buyer who has net income per month of £3000.00, the buyer’s new overseas mortgage payment plus their existing monthly debt payments including any existing mortgage, loans or credit card payments must not exceed £1000.00. Let’s say they have a mortgage payment of £600, a monthly credit card bill of £100 and their new overseas mortgage will be £300, then in this instance they would be approved by the overseas bank.

However if their existing monthly debt payments were £1000 then this would exceed this ratio because the total would be £1300 and the lender would decline the application.

We initially qualify clients by having a chat with them over the phone and then completing a short fact find with them. As we know the banks criteria we can tell a client whether they will qualify or not and then be able to give them an idea of costs and paperwork required.

Currently we can get 65% loan to value mortgages for all nationalities. Interest only mortgages are not available. Rates start at around 2.8%.

Paperwork required is as follows:

Required Supporting Documentation
Photocopy ID - passport or Driving Licence

INCOME DOCUMENTATION
Employed applicants:
Income Return for previous year
2 months’ payslips (the most recent months)
Employer’s Declaration (letter on headed notepaper) of employment and Gross Annual Salary
Self Employed:
Two years accounts and letter from accountant

FINANCIAL ASSETS DOCUMENTATION
Most recent 3 months’ bank statements of all current accounts
Evidence of financial balance available to complete the purchase (proof of investment or other liquid assets in accounts, deposits etc.)
Evidence of any further assets or income from other sources

FINANCIAL COMMITMENTS DOCUMENTATION
Statement by lending bank regarding the status of your current mortgage
Statements of other Loans outstanding (confirming Capital outstanding and monthly repayment amount)

ITALIAN PROPERTY DOCUMENTATION – necessary in order to undertake the survey
Compromesso di vendita – Preliminary Sales Agreement
Planimetria Catastale – Property Plans (map of property layout)
Atto di Vendita – Confirmation of actual Ownership/title to property

OTHER ITALIAN DOCUMENTATION
Italian Codice Fiscale (fiscal code number)
Italian Bank account details – for Direct Debit charge

If we can be of help or you have any further questions then please contact me.

Kevin Macadam
Overseas Mortgage Broker Ltd


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PostPosted: September 16th, 2010, 1:41 pm 
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Joined: December 2nd, 2009, 3:16 pm
Posts: 453
Location: N Ireland
Kevin, thanks for this useful information. Just 1 question, when did interest only mortgages get withdrawn? My 60% interest only mortage with Barclays was agreed in July. (Just needing some reassurance!)


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PostPosted: September 16th, 2010, 4:37 pm 
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Joined: July 8th, 2010, 1:04 pm
Posts: 3
hi

are your mortgages with barclays and unicredit or anyone esle?

unicredit only valued my apartment in vista montagna at 78,000 euros where the sale price was 100,000!! therefore they will only lend 50,000, i need more than that unfortunately, please let me know as i have all the documents at hand.

many thanks

gareth

gareth.baxter@ostc.com

tel 07769 855 622


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PostPosted: September 16th, 2010, 6:37 pm 
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Joined: September 16th, 2010, 11:58 am
Posts: 7
Location: Hessle, East Yorkshire.
eviegardner wrote:
Kevin, thanks for this useful information. Just 1 question, when did interest only mortgages get withdrawn? My 60% interest only mortage with Barclays was agreed in July. (Just needing some reassurance!)


Hi Evie

You can still get interest only through Barclays, however the other lenders we use do not offer interest only.

Kevin


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PostPosted: September 16th, 2010, 6:39 pm 
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Joined: September 16th, 2010, 11:58 am
Posts: 7
Location: Hessle, East Yorkshire.
gbax12345 wrote:
hi

are your mortgages with barclays and unicredit or anyone esle?

unicredit only valued my apartment in vista montagna at 78,000 euros where the sale price was 100,000!! therefore they will only lend 50,000, i need more than that unfortunately, please let me know as i have all the documents at hand.

many thanks

gareth

gareth.baxter@ostc.com

tel 07769 855 622



Gareth

I look forward to receiving the short mortgage fact find that I have just sent you. We will then be able to give you an indication within 24 hours as to whether we will be able to help.

Kevin


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