Why use a broker to arrange the mortgage?
A broker can act on your behalf to secure a mortgage tailor made to your specific requirements. The Italian mortgage industry for foreigners purchasing property in Italy is still quite young. What’s more, Italian mortgages usually have to be paid back over much shorter periods those in the UK, resulting in higher monthly instalments. For these reasons we suggest arranging your mortgage in your home country.

What types of mortgages are available and for whom? Making the right choice can save you thousands of Pounds, Euros or Dollars. There are three main options for people wishing to raise finance to purchase property in Italy. The most common being re-mortgaging ones existing property/ies in order to release equity, utilizing an offshore bank or utilizing a bank in Italy. Not all options are available in all countries. Not only availability of product, but also interest rates, tax regimes and whether they are staying resident in their current country or becoming resident in Italy will influence the decision.

The type of mortgage is a major consideration i.e. repayment or interest only. In many countries there is no choice. Factors in Italy are shorter lending periods than in the U.K., ones UK property can not be used as collateral, they will only offer a maximum of 70% of the purchase price normally at a variable rate. In the U.K. for example, there are over 130 lenders with over 14,500 schemes. Fortunately with modern technology it is possible for our broker to sift the list for the best discount rate or best-fixed rate or a lender that will lend beyond age 70. In the U.K there are lenders sympathetic to those who have problems proving income whereas offshore lenders tend to require traditional proof of income or finance.

We are not mortgage brokers; however, we refer our clients to a highly experienced leading broker that has given our clients good service. The broker does not operate a mass-market scheme; instead they consider each client’s individual requirements, resulting in a mortgage that is chosen for the particular client’s need, either in the UK, Italy or even both. Owing to the volume of work we give them, they offer preferential terms to all our clients and visitors.


 

 
When applying for your mortgage or planning to transfer non-Euro currency, we strongly suggest you take currency fluctuations into account between Sterling/non-Euro currency and the Euro, plus the high costs banks generally charge on currency conversion and transfers. When it comes to transferring money to an Italian bank, you are at the mercy of the currency exchange markets and usually your bank in terms of how much this costs you.

We can advise you about one of the best methods of transferring money, where to seek out the best rates and where you can get commission free and hassle free transfers direct to your non-resident Italian Euro bank account. Currency exchange companies offer an excellent solution to this enabling you to save a lot of money. 
 

Many people are unaware or neglect the importance that exchange rates have on the cost of their overseas property and the currency risk that is associated with an overseas purchase. Between 3rd November 2003 and 2nd January 2004, the Sterling/Euro exchange rate fell from 1.468 to 1.414. This equates in just eight weeks to a difference in real terms of over £ 5,200 on a € 200,000 property. Here are our top 7 facts and recommendations that will save you money:
1. Use a recommended currency specialist as banks rarely give competitive currency exchange rates.
2. The currency dealer’s ability to access up-to-the-second exchange rates and contact you at the most opportune time means that they should be able to significantly undercut banks and other financial institutions that quote daily rates
3. Avoid bank charges. Some banks charge commission, and almost always charge between £25-45 for an international transfer of your funds abroad. With a specialist, these charges are completely removed for amounts over £ 15,000 and there is no commission charged
4. Tell them what you want. The job of the currency specialist is to get you the best exchange rate within your timeframe. If there is a rate that you need to achieve, let your specialist know and they can then book it automatically or contact you at your convenience
5. Remove currency risk. The ability to fix the exchange rate when the market is favourable for some time in the future removes currency risk. This can be done using a forward contract, but there are other mechanisms that may suit your particular circumstances that a specialist can recommend
6. Avoid received costs. Some overseas banks may charge you to receive your foreign exchange transfer. Please note that some banks may also charge commission and telegraphic transfer fees. You can also negotiate with your bank to reduce or remove these charges
7. On average, a bank transfer takes 8 days to reach an Italian bank account and international clearance of a UK cheque takes 2 or 3 weeks. By using a currency exchange broker, their electronic funds transfer normally takes 24-48 hours.


Here’s how it can work for you
We are not currency brokers, but as a result of extensive research, followed by close collaboration with a foreign exchange company; we are pleased to be able to refer you to a broker that has given our clients good service in the past. Due to the volume of work we give them, they offer preferential rates to all our clients and visitors. Without any obligation, please complete the enquiry form and the currency exchange specialist will contact you at your convenience. When they contact you, you can explain that you are in the process of buying a property in Italy through us and that you would like to arrange against currency fluctuation between the date of signing the Preliminary contract and the date you expect to pay for the house.
The broker will probably suggest a hedging strategy to best suit your budget and individual needs, thereby eliminating any currency fluctuation risk and giving you peace of mind.
 
 
 

Comprehensive cover underwritten by one of the world’s leading insurers. It includes essential features such as cover during letting and protection when your property is unoccupied. It also covers part of your home that may be excluded in "community" policies.
The true value of any insurance is however only fully appreciated when a claim is made. Professional local loss adjusters settle claims. All policy documents are in English and if you have an enquiry or claim you talk directly to a UK based, English speaking support team.