9279 Mortgage brokers and lending criteria.

[FONT=Arial]Hi all,[/FONT]
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[FONT=Arial]While the following may be a little boring for the ‘old hands’ out there I thought that this information may be of use to the new members just starting out on their search. There are of course many mortgage brokers in Italy, but these are the best two that we have found so far. [/FONT]
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[FONT=Arial][URL="http://www.housearounditaly.com/"][B]www.housearounditaly.com[/B][/URL][/FONT]
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[FONT=Arial]The above while not technically a mortgage broker will assist with mortgages if a house purchase is made through them. [/FONT]
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[FONT=Arial]The second is a major mortgage broker that deals specifically with non-resident buyers, they are Centro Istruttorie Woolwich, they are a part of Barclays. Their contact details are Tel: 0039 070 241 82 2465 Fax: 0039 070 911.31.11. [/FONT]
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[FONT=Arial]Below is the lending criteria that is typical in Italy.[/FONT]
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[B][FONT=Arial]LENDING CRITERIA – Purchase[/FONT][/B]
[B][FONT=Arial]Before applying for a mortgage in Italy, you must first find the property you want to purchase. [/FONT][/B][FONT=Arial]Banca[/FONT]
[FONT=Arial]Woolwich can accept a mortgage when the preliminary agreement [I]“Compromesso” [/I]has been signed or if there is a[/FONT]
[FONT=Arial]proposal of buying accepted[/FONT]
[FONT=Arial]To avoid the situation where the purchaser forfeits his deposit a clause could be added on the agreement.[/FONT]
[I][FONT=Arial]Banca Woolwich [/FONT][/I][FONT=Arial]will finance up to 70% or 80% of the purchased price, valuation will be confirm by our surveyor.[/FONT]
[FONT=Arial]The monthly instalment can’t be more than 30% of the applicants gross income (UK loan commitments of more than[/FONT]
[FONT=Arial]12 months must be added to the mortgage instalment).[/FONT]
[I][FONT=Arial]Banca Woolwich [/FONT][/I][FONT=Arial]can finance only the purchase of civil dwelling. We don’t finance land, rural buildings ( registered[/FONT]
[FONT=Arial]in category A6 on the Italian Catasto) or properties that are not habitable at the time of issuance of the preliminary[/FONT]
[FONT=Arial]agreement or [I]“Compromesso”.[/I][/FONT]
[FONT=Arial]Banca Woolwich will not consider applications to finance commercial properties.[/FONT]
[B][FONT=Arial]LENDING CRITERIA – [I]Renovation[/I][/FONT][/B]
[FONT=Arial]To apply for a Renovation Mortgage applicant needs to be the owner of the property.[/FONT]
[FONT=Arial]A first charge will be taken. A second charge will be taken only if a first one is in favour of Banca Woolwich. Banca[/FONT]
[FONT=Arial]Woolwich will finance up to 65% of the final property value.[/FONT]
[FONT=Arial]Renovation Mortgage is a staged payment loan (by [I]tranches[/I]): the first one at the completion, next [I]tranches [/I]when[/FONT]
[FONT=Arial]works will be in progress or completed (within 12 months from the completion). Banca Woolwich surveyor will[/FONT]
[FONT=Arial]provide reports about the progress of works (valuation fees: 220,00 Euros; reinspections 50,00 Euros for renovation[/FONT]
[FONT=Arial]projects only).[/FONT]
[FONT=Arial]After the completion (1st [I]tranche[/I]) you need to wait 2 months (after having paid first and second instalment) before[/FONT]
[FONT=Arial]asking for the loan of 2nd [I]tranche[/I].[/FONT]
[I][FONT=Arial]Tranches [/FONT][/I][FONT=Arial]can be loan only between 2nd and 10th day each month.[/FONT]
[FONT=Arial]Monthly instalment (before the total amount loaned ) includes interest only for the amount already loaned.[/FONT]
[B][FONT=Arial]METHOD OF OPERATION[/FONT][/B]
[B][FONT=Arial]1. On receipt of a fully completed application form together with the relevant supporting documentation,[/FONT][/B]
[B][FONT=Arial]Banca Woolwich will contact you to check all papers received. Please note that failure to send all documents[/FONT][/B]
[B][FONT=Arial]required with the application form will result in delays.[/FONT][/B]
[FONT=Arial]2. After having conducted all of the necessary credit checks, [I]Banca Woolwich [/I]will give the first response based on[/FONT]
[FONT=Arial]the customer’s income. The final response is subject to satisfactory valuation of the property and the notary’s legal[/FONT]
[FONT=Arial]searches.[/FONT]
[FONT=Arial]3. A Banca Woolwich surveyor will provide a report of the property and a valuation as well. The applicant, or[/FONT]
[FONT=Arial]somebody on his behalf, must receive the surveyor and pay him directly.[/FONT]
[FONT=Arial]4. On receipt of the survey and notary’s report, [I]Banca Woolwich [/I]will definitively confirm (or decline) the offer of[/FONT]
[FONT=Arial]advance.[/FONT]
[FONT=Arial]5. A completion date is set at the notary’s office, at which the parties, the Notary Public and [I]Banca Woolwich[/I][/FONT]
[FONT=Arial]representative must attend.[/FONT]
[FONT=Arial]6. The Deed is signed followed by the mortgage contract. [I]Banca Woolwich [/I]will deposit the cheques with the notary[/FONT]
[FONT=Arial]until such time that the notary has confirmed that the legal charge on the property has been registered.[/FONT]
[FONT=Arial]7[B]. If funds released are required immediately, customer can use [I]Banca Woolwich [/I]Pronto Cash Service (only[/B][/FONT]
[B][FONT=Arial]for purchase mortgages up to 350.000,00 Euro with a cost of 0,15% of the sum loaned).[/FONT][/B]
[FONT=Arial]8. Parties will pay legal fees and taxes to the Public Notary. Pre-first instalment interests, mortgage registration tax,[/FONT]
[FONT=Arial]application fees, building insurance, life insurance (optional) and Pronto Cash Service (if required) will be[/FONT]
[FONT=Arial]deducted from the amount loaned.[/FONT]
[FONT=Arial]9. Completion fees to be paid by the customer directly with their first instalment[/FONT]
[FONT=Arial]10. The Bank direct debit is then completed for repayments starting from the third instalment. The first and second[/FONT]
[FONT=Arial]instalment must be paid via credit transfer directly by the borrower.[/FONT]
[B][FONT=Arial]BANCA WOOLWICH MORTGAGES[/FONT][/B]
[B][I][FONT=Arial]Properties considered[/FONT][/I][/B][FONT=Arial]: Residential properties recorded on the housing “Catasto” Register.[/FONT]
[B][I][FONT=Arial]Eligibility: [/FONT][/I][/B][FONT=Arial]Salaried employees who have been in their current job for at least one year.[/FONT]
[FONT=Arial]Self-employed people who have been in their current business for at least two years.[/FONT]
[FONT=Arial]In all cases, the applicant must not be aged over 85 when the loan expires and must[/FONT]
[FONT=Arial]not have had judgements against him/her for bad debts.[/FONT]
[B][I][FONT=Arial]Sum loaned: [/FONT][/I][/B][FONT=Arial]Minimum 50 000,00 Euro. Maximum 70% or 80 % of property price subject to the valuation (Purchase)[/FONT]
[FONT=Arial]and 65% ofthe final property value for Renovation Mortgage.[/FONT]
[B][I][FONT=Arial]Instalment due: [/FONT][/I][/B][FONT=Arial]Monthly.[/FONT]
[B][I][FONT=Arial]Means of repayment: [/FONT][/I][/B][FONT=Arial]Via bank direct debit from an Italian bank account[/FONT]
[B][I][FONT=Arial]Application fees: [/FONT][/I][/B][FONT=Arial]0,50% of the mortgage loaned (Min. 250, 00 Euro; Max. 1.000,00 Euro)[/FONT]
[B][I][FONT=Arial]Completion fees[/FONT][/I][/B][FONT=Arial]: 110,00 Euro paid directly on first instalment.[/FONT]
[B][I][FONT=Arial]Valuation fees: [/FONT][/I][/B][FONT=Arial]235,00 Euro; reinspections 62,00 Euro (for renovation projects only).[/FONT]
[B][I][FONT=Arial]Building Insurance: [/FONT][/I][/B][FONT=Arial]Variable on the basis of the duration and the amount loaned.[/FONT]
[B][I][FONT=Arial]Mortgage registration tax: [/FONT][/I][/B][FONT=Arial]0,25% of the mortgage loaned, first home; 2% 2nd home.[/FONT]
[B][I][FONT=Arial]Life Insurance: [/FONT][/I][/B][FONT=Arial]Optional.[/FONT]
[B][FONT=Arial]NO PENALTY IS DUE FOR EARLY REDEMPTION and nor for partially payment in advance[/FONT][/B]
[B][I][FONT=Arial]“[/FONT][/I][/B][B][FONT=Arial]Variabile”: Variable Rate Mortgage[/FONT][/B]
[B][I][FONT=Arial]Instalment amount : [/FONT][/I][/B][FONT=Arial]The interest rate is indexed to the average of [B][I]EURIBOR 1 month [/I]365 [/B]set two months[/FONT]
[FONT=Arial]prior, plus the spread.[/FONT]
[B][I][FONT=Arial]Duration of loan (years): [/FONT][/I][/B][FONT=Arial]10 15 20 25 30[/FONT]
[B][I][FONT=Arial]EURIBOR 1 month 365 [/FONT][/I][/B][B][FONT=Arial]+ spread [/FONT][/B][FONT=Arial]eur. +1,30% eur. +1,50% eur. +1,60% eur.+1,80% eur.+1,80%[/FONT]
[B][I][FONT=Arial]NEW DURATION of loan (years) for a variable rate mortgage only): [/FONT][/I][/B][I][FONT=Arial]35 40[/FONT][/I]
[FONT=Arial]Interest rate: [I]EURIBOR 1 month 365 [/I]+ spread eur. +1,80% eur. +1,80%[/FONT]
[B][I][FONT=Arial]Early Redemption: [/FONT][/I][/B][FONT=Arial]60 days notice required and can only be made on instalment date.[/FONT]
[B][FONT=Arial]Penalty for early redemption is zero, you can also reimburse capital in advance partially without any charge[/FONT][/B]
[B][I][FONT=Arial]“[/FONT][/I][/B][B][FONT=Arial]Fisso”: Fixed Rate Mortgage[/FONT][/B]
[B][I][FONT=Arial]Instalments amount: [/FONT][/I][/B][FONT=Arial]Fixed rate for all the duration of loan. The interest rate is indexed to the average of [B]EURIRS 1[/B][/FONT]
[B][FONT=Arial]month [/FONT][/B][FONT=Arial]set the first of the month and it is valid from completion from the 16th of that month to the 15th of the next[/FONT]
[FONT=Arial]month[/FONT]
[B][I][FONT=Arial]Duration of loan (years): [/FONT][/I][/B][FONT=Arial]10 15 20 25 30[/FONT]
[B][FONT=Arial]EURIRS + SPREAD [/FONT][/B][FONT=Arial]Eurirs 10yrs+1,30% irs 15yrs+1,50% irs 20yrs+1,60% irs 25yrs+1,80% irs 30yrs+1,80%[/FONT]
[B][I][FONT=Arial]Early Redemption: [/FONT][/I][/B][FONT=Arial]60 days notice required and can only be made on instalment date.[/FONT]
[B][FONT=Arial]Penalty for early redemption is zero, you can also reimburse capital in advance partially without any charg[/FONT][/B][FONT=Arial]e[/FONT]
[B][FONT=Arial]“Libero”: Variable Rate with Free Capital Reimbursement Mortgage (Purchase only)[/FONT][/B]
[B][I][FONT=Arial]Instalment amount : [/FONT][/I][/B][FONT=Arial]Monthly instalment includes [B]interest only[/B][/FONT]
[B][I][FONT=Arial]Duration of loan (years): [/FONT][/I][/B][FONT=Arial]10 15 20 25[/FONT]
[B][I][FONT=Arial]EURIBOR 1 month 365 [/FONT][/I][/B][B][FONT=Arial]+spread [/FONT][/B][FONT=Arial]Euribor +1,45% Euribor +1,55% euribor +1,70% euribor+1.90%[/FONT]
[B][I][FONT=Arial]Capital Reimbursement: [/FONT][/I][/B][I][FONT=Arial]15 years: [/FONT][/I][FONT=Arial]25% of the original amount of the loan within the 5th year, another 35%[/FONT]
[FONT=Arial]within the 10th year and the remaining 40% within the 15th year.[/FONT]
[I][FONT=Arial]20 years: [/FONT][/I][FONT=Arial]15% of the original amount of the loan within the 5th year, another 20% within the 10th year, another 30%[/FONT]
[FONT=Arial]within the 15th year and the remaining 35% within the 20th year.[/FONT]
[FONT=Arial]The minimum amount refundable is 1000 Euro, via credit transfer and interest have to run from the instalment[/FONT]
[FONT=Arial]deadline.[/FONT]
[B][I][FONT=Arial]Early Redemption: [/FONT][/I][/B][FONT=Arial]60 days notice required and can only be made on instalment date.Penalty for early redemption is[/FONT]
[FONT=Arial]zero[/FONT]
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[FONT=Arial]enjoy the hunt.[/FONT]
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[FONT=Arial]Wayne and Sheila.[/FONT]
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