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Getting A Mortgage In Germany
Should
I Get A UK or German Mortgage?
The
German mortgage market is fairly conservative
- indeed, older British buyers will find it reminds them of
the UK mortgage market 25+ years ago!
Although things are slowly becoming more flexible, UK buyers
might find it preferable to raise finance in the UK - from a
remortgage or other secured loan.
What's best for you really depends on your circumstances and
the type of property you are buying in Germany
- if you aren't sure of your options you should take advice
from an overseas mortgage specialist.
Getting A Mortgage In Germany
One
of the features of the German mortgage system is that a fairly
high deposit is required in all cases. Indeed, many German buyers
are now getting around this requirement by taking both a mortgage
and a loan to fund the deposit!
Some lenders may also require you to show that you have previously
been a reliable saver - requirements vary.
Typical German mortgage terms are based around:
- Loan
of up to 70% of property's value
- Maximum
term of 30 years / until retirement age
- Fixed
interest rate
- Repayment
only
-
Lending multiple of approximately 3x income
Expect to have to provide comprehensive proof of both your income and your outgoings when applying for a mortgage in Germany - documents such as these:
- Last
3 months' payslips
- Last
3-6 months' bank statements
- Last
2 years' P60s
You
will also need a copy of your passport for your mortgage application.
If You're Self-Employed
German lenders don't generally offer non-status (self-certification) mortgages, so you will be required to provide full proof of your and your business' financial status:
- 1-2
years audited accounts
- Last
6-12 months' business and personal bank statements
- Previous tax returns
You will also need a copy of your passport and may need a letter from a chartered accountant detailing your personal drawings from your business.
Rental IncomeGerman lenders will lend to investment buyers based on potential rental income, but expect very carefully-assessed and prudent estimations.
Buyers looking for a holiday home that will be let out some of the time may find they are only eligible under residential mortgage terms (i.e. without considering rental income).
Read On
•
Introduction
• Buying A Property
In Germany – 3 Easy Steps
• Should I Get
A UK or German Mortgage?
• Getting
A Mortgage In Germany
• Other Things
To Consider Before Buying In Germany
• Glossary of
Key German Terms
Buying Overseas Property and Mortgages
Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below
Browse over 200 Free Mortgage TipsYour Complete Guide to UK Mortgages Find Out How to Win the Race to Buy Your Home - Home Buyers Guide Learn How to Save ££s by Remortgaging Read the Insider Info on Home Insurance Site Help |
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