Malta

What’s Covered:

• Malta

Loans Available:

• For purchase, re-mortgage, self build or equity release
• Variable rate mortgages available
• Commercial loans are also available

Loan to Value:

• Based on the lower of purchase price or valuation of the property
• Loans in Maltese Lira are subject to a loan to valuation of 90% on the lower of estimate of value of purchase price or cost of construction
• Loans in Foreign Currency are subject to a loan to valuation of 80% on the lower of estimate of value of purchase price or cost of construction.
• Extent of finance is subject to AIP (Acquisition of Immovable Property) permit, which is obtained through their legal representative in Malta

Interest Rates:

• Interest Rate for Loans in Maltese Lira over LM35,000 -- 1.5% p.a. over the base rate, presently 3.75%, ie effective rate 5.25%p.a.
• Interest Rate for Loans in Foreign Currency (variable interest) 2% over 6 month LIBOR for that currency - adjusted at the end of each six month period - EUR is presently 3.6%) i.e. effective 6.6%.

Maximum Term:

• 30 years or 65 years of age – which ever is shorter

Maximum Age at Completion:

• 65 years

Currencies Available:

• Maltese Lira, Euro and Sterling mortgages available

Security:

• First General and Special Hypothec and Special Privilege over the property being financed
• A charge over a Life Insurance policy for the same amount of the Loan
• A charge over a Building Insurance policy covering the property being financed

Documentation required (minimum):

• Evidence of Income. After establishing what amount of loan is required, and over what period of time, we shall have to see that monthly repayments could be serviced from their income. If they are self employed we need a certificate by an accountant stating their annual income for the past 3 years plus the relative tax returns
  Or else, if you are employed, they can provide us with the past 3 months pay slips plus the past year tax return
• 6 months bank statements preferably showing direct credit of their salary, and 12 months statements of any loans/mortgages they might have
• Character Reference. We shall have to obtain the usual references for the opening of an account
• Photocopy of means of identification, duly authenticated, shall also have to be obtained
• Preliminary Agreement. We shall eventually have to be provided with a copy of the preliminary agreement for the purchase of the property in Malta
• AIP permit. This permit will have to be obtained prior to drawing of the loan
• Architect's estimate of value shall also be required

General Fees to Consider:

• A one-time processing fee is applicable equivalent to 0.3% of loan amount, maximum MTL200. Other fees for perfecting of our security are also applicable, depending on the type and amount of the Bank's charge.
• Fidentia Introductory fee