Getting
A Mortgage In Malta
Should
I Get A UK or Maltese Mortgage?
Maltese
banks will happily give mortgages to foreign buyers,
and you should have no problem getting a mortgage for your Maltese
property if you choose. Depending on your circumstances, however,
you may find it more advantageous to borrow the money required
for your property in the UK - either by:
- Remortgaging your current home, if you have enough equity
- Taking out a mortgage from a UK lender to buy your Maltese
property (several UK lenders offer this service)
Borrowing the money you need in the UK has two main advantages:
- Greater choice of mortgages, including interest-only and
self-certification mortgages, which are not available in Malta
- Protecting yourself from changes to the exchange rate between
the Maltese Lira and the pound
Getting A Mortgage In Malta
Getting
a mortgage in Malta is relatively straightforward, although
the approval process can be a little slow - if applying for
a mortgage it is best to start the process as soon as you sign
the preliminary agreement (or even sooner, if possible).
There are several major banks in Malta that are happy to lend
to foreigners but they do not offer the same range of mortgage
products that are available in the UK. In particular, non-status
(self-certified) and interest-only
mortgages are not available.
Typical limits for a Maltese mortgage are:
- Monthly
payments no greater than 30 per cent of gross income
- Mortgage
terms of 10-20 years, or until 65th birthday
- Maximum
loan of 80% of property's value (90% in some cases)
- Slightly
higher interest rates than the UK
Standard requirements also exist for proof of income - we've summarised
some typical requirements below.
If You're Employed
If you're employed in the UK and are buying a property in Malta,
you will need to provide proof of your income and employment status
- for example:
- Last
1-2 years' P60 or payslips
- Employer's
reference
- Last
6 months' bank statements
- Proof
of any other source of income you wish to be considered with
your mortgage application
Pension and investment income will normally be accepted for
a mortgage application, but no guarantee is made of this.
If You're Self-Employed
As Maltese banks do not offer self-certification mortgages,
self-employed applicants will need to provide documents similar
to the following:
- Last
1-2 years' audited accounts
- Last
12 months' business bank statements
- Last
6 months' personal banks statements
You may also need a letter from your accountant providing details
of your drawings from the business.
Rental Income
While rental of your home is generally permitted in Malta, potential
rental income will not be taken into consideration
in a Maltese mortgage application.
Read
On
•
Introduction
• Buying A Property
In Malta – 3 Easy Steps
• Should I Get A
UK or Maltese Mortgage?
• Getting
A Mortgage In Malta
• Other Things To
Consider Before Buying In Malta
• Glossary of Key
Maltese Terms
Buying
Overseas Property and Mortgages
