Getting Mortgage In Malta | Maltese Mortgages

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

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Value of Property	£
		(eg 125000)

Borrow How Much?	£
		(eg 92500)

Your Mortgage Type

First time buyer?		Yes No
Have you found property?		Yes No
Country

Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel

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Getting A Mortgage In Malta

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