Malta: Mortgages

Maltese lending criteria

Do I qualify for a Maltese mortgage?

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 the application form, and Conti won’t charge you for this service.

How much can I borrow?

• Calculation based on the valuation or purchase price, whichever is the lower

• Up to 90% of LTV available for house purchase, remortgage or home improvements in Euros.

• Based on joint net “take home” pay, where joint income is applicable

• Existing liabilities, e.g. mortgage or rental payments, loans, credit card payments and maintenance are taken into account, together with the proposed Maltese mortgage payments. All this must not exceed 35% of your monthly net income.


What evidence of income do I need?

If you are employed:
• Your last three month’s payslips
• Your latest P60 & Employers Reference
• Your last six month’s personal bank statements

If you are self-employed:
• Your last three year’s audited accounts
• Your last six month’s business bank statements
• Your last six month’s personal bank statements.

Example mortgage payments

If, for example, your net joint monthly income is £2,500, 35% of this equates to £875. If your only liability is your mortgage payment, of say £300, this would leave a balance of £575 for your Maltese mortgage repayment

What types of Maltese mortgages are available?
For our latest rates and to see the different types of Maltese mortgages on offer, please visit our website or speak to one of our advisers.

• Loans available up to 90% of the valuation or purchase price of the property, whichever is the lower.
• The maximum term of any mortgage is 30 years, this varies on the type of loan
• Repayment mortgages available
• The minimum loan you can take out is £20,000

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 relevant application 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.

© Conti Financial Services Limited 2008

This article is reproduced with the kind permission of Conti Financial Services Limited.

For information and advice on overseas mortgages and residential finance in over 30 countries, contact Conti Financial Services Ltd on www.mortgagesoverseas.com