<h2>Getting a mortgage in Malta<\/h2>\r\nThe Mediterranean sun, immersive culture and relaxed vibe of Malta appeals to many British property investors.\r\n\r\nRestrictions on foreigners owning property became much more relaxed after Malta joined the EU in 2004 and most Maltese nationals speak both their native language as well as English. English is also one of the two official languages in Malta so you can have all of your documentation done in English too.\r\n\r\nDespite this, some British buyers can be hesitant about the mortgage process in Malta. And many have approached us asking whether it is possible or not to get one.\r\n\r\nFortunately, getting a mortgage in Malta is easier than you think if you talk to one of the expert advisors we work with. Applying through an\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/international-mortgage-broker\/">international mortgage broker<\/a>\u00a0who knows the country and the processes well, it can be pretty straightforward.\r\n\r\nTo give you all the information you need, we\u2019ve created this guide with lots of helpful tips including where you can turn\u00a0to for advice.\r\n<ul>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#mortgage-malta">Can I get an overseas mortgage for a property in Malta?<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#requirements">What are the requirements for a mortgage in Malta?<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#affordability-malta">How much can you borrow for a mortgage in Malta?<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#how-to-malta">How to get a mortgage in Malta<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#100%-mortgage">Can you get a 100% mortgage in Malta?<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#malta-bad-credit">Can you get a mortgage for a property in Malta with bad credit?<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#malta-faq">Malta mortgages FAQs<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#best-advice">Get the best advice from a whole-of-market broker<\/a><\/li>\r\n \t<li><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/overseas-mortgages\/maltese-mortgage\/#malta-expert">Speak to a Malta mortgages expert<\/a><\/li>\r\n<\/ul>\r\n[feefo-banner]\r\n<h2 id="mortgage-malta">Can I get an overseas mortgage for a property in Malta?<\/h2>\r\nAs a foreigner, you may find that some lenders in Malta can be reluctant to lend to you.\r\n\r\nThat being said, there are specialist lenders in Malta that do offer mortgages to expats, provided you meet their criteria, which can vary from lender to lender.\r\n\r\nAs someone who may not be an expert in Maltese lender\u2019s terms and conditions, it can be tricky to predict whether you are eligible.\r\n\r\nThis is where one of the\u00a0expert overseas brokers\u00a0we work with can help.\r\n\r\nTo save you from sourcing and comparing multiple lenders and their criteria, they can research the market for you and then recommend the ones that are most likely to accept you.\r\n<h2 id="requirements">What are the requirements for a mortgage in Malta?<\/h2>\r\nBefore you can even apply for a Maltese mortgage, you will be required to do the following:\r\n<ul>\r\n \t<li>Open a bank account in Malta<\/li>\r\n \t<li>Gain permission from the Central Bank of Malta<\/li>\r\n \t<li>Buy life insurance<\/li>\r\n<\/ul>\r\nMaltese lenders also require that all borrowers need to be aged between 18 and 65.\r\n<h2 id="affordability-malta">How much can you borrow for a mortgage in Malta?<\/h2>\r\nThe first thing to be aware of when getting a mortgage in Malta is that some Maltese banks have a minimum loan which is usually around \u20ac25,000. There may also be a maximum loan limit of up to \u20ac1,000,000.\r\n\r\nMost lenders in Malta will consider loaning mortgages with loan to value (LTV) rates of 80%, although in exceptional circumstances, you may be able to borrow up to 90% of the property\u2019s value.\r\n\r\nOf course, every lender is different. In fact, many borrowers are unaware that even if they are rejected by one lender, they may still be approved by another.\r\n\r\nFor more information on how much you could borrow with a mortgage for a property in Malta\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">speak to an advisor<\/a>.\r\n<h3>How long is a mortgage in Malta?<\/h3>\r\nUnlike the UK, the maximum repayment period of a mortgage in Malta is usually 30 or 40 years.\r\n\r\nBe aware that Maltese mortgage lenders do not often provide the option for early repayment and if you do repay your mortgage early, you may incur a penalty.\r\n<h2 id="how-to-malta">How to get a mortgage in Malta<\/h2>\r\n<h3>Find an international broker<\/h3>\r\nAccurate and impartial advice is key when getting a mortgage in Malta.\r\n\r\nTo avoid any nasty mortgage rejections on your credit file, work with an\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist\/">international mortgage<\/a>\u00a0expert who can guide you through the process.\r\n\r\nAn experienced broker will:\r\n<ul>\r\n \t<li>Find the best available rates<\/li>\r\n \t<li>Negotiate the terms of your mortgage for you<\/li>\r\n \t<li>Handle any paperwork<\/li>\r\n \t<li>Arrange translations if needed<\/li>\r\n \t<li>Check any contracts thoroughly before you sign<\/li>\r\n<\/ul>\r\nIf you would like to kickstart your Maltese\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/">mortgage application<\/a>,\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">make an enquiry<\/a>.\r\n\r\nWe\u2019ll put you in touch with an expert and get you the advice you need to move forward with your application.\r\n<h3>Find out if you\u2019re eligible for a Maltese mortgage<\/h3>\r\nMaltese lenders will focus heavily on your\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/income-needed-for-mortgage\/">income<\/a>\u00a0to establish whether you can\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/">afford<\/a>\u00a0your mortgage in Malta and whether you\u2019re a reliable applicant for a loan.\r\n\r\nAs well as this, Maltese lenders will also require that all of your debts, including your future mortgage payments, be no greater than\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/debt-to-income-ratio\/">35% of your total income<\/a>.\r\n\r\nFor example, someone with a monthly income of \u00a31,600 cannot have debt payments that equate to more than \u00a3560 a month.\r\n\r\nKnowing in advance whether you\u2019re eligible for a mortgage in Malta can save you a lot of wasted time and money in application fees.\r\n\r\nIt can also make the process of finding a lender and being accepted for a mortgage a lot easier, as it filters out any incompatible lenders.\r\n<h3>Prepare the right documents in advance<\/h3>\r\nTo proceed with your mortgage application, Maltese lenders will ask you for your:\r\n<ul>\r\n \t<li>Passport, driving licence or other means of ID<\/li>\r\n \t<li>Proof of address<\/li>\r\n \t<li>Proof of income<\/li>\r\n<\/ul>\r\nIf you are looking for a\u00a0 <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/">self-employed mortgage<\/a>\u00a0you may also need:\r\n<ul>\r\n \t<li>Your most recent audited accounts<\/li>\r\n \t<li>6 months\u2019 of personal bank statements<\/li>\r\n \t<li>12 months\u2019 of business bank statements<\/li>\r\n<\/ul>\r\n<h3>Find a property in Malta<\/h3>\r\nOnce a lender approves you for a mortgage in Malta, you should receive a mortgage in principle. Essentially, this is an offer of a mortgage for a set amount, with agreed terms and conditions.\r\n\r\nThe offer usually lasts around 6 months, so once you know how much you can afford to borrow, you can start the process of finding a property.\r\n<h3>Wait for your lender to give an independent valuation<\/h3>\r\nWhen you have found a property in Malta that you would like to buy, your lender will need to give you an independent valuation so that they can assess how much they think the property is worth.\r\n\r\nIf the lender values the property at a much lower cost than the market value, you may need to negotiate the price of the property with the seller or find financing for the additional funds needed to make the sale go through.\r\n<h3>Life insurance<\/h3>\r\nIt is law in Malta that a mortgage must be protected by life insurance, which will usually need to be sourced from a local insurance company. Underwriting in Malta is done in a very similar manner to the UK. For this reason if you've had<a href="https:\/\/www.onlinemoneyadvisor.co.uk\/insurance\/health-insurance\/pre-existing-conditions\/">\u00a0health issues<\/a>\u00a0then obtaining a mortgage from a Maltese lender may be difficult.\r\n\r\nIf you\u2019re unable to obtain insurance locally then other options such as\u00a0raising capital\u00a0on an asset in the UK or elsewhere could be an option.\r\n<h3>Sign the mortgage agreement<\/h3>\r\nNow that you have a property and a mortgage offer, the only thing left to do is sign your mortgage agreement for your property in Malta. This is known locally as the \u201cpromise of sale\u201d which is the same as exchanging contracts in the UK. It\u2019s normally done fairly early in the process, right after the mortgage has been approved by the lender.\r\n<h2 id="100%-mortgage">Can you get a 100% mortgage in Malta?<\/h2>\r\nAlthough 100% mortgages are available in Malta, they can be exceptionally difficult to obtain as a non-resident.\r\n\r\nThere are a handful of lenders that will consider providing <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/no-deposit-mortgages\/">100% mortgages<\/a> but these are usually offered in exceptional circumstances to Maltese nationals.\r\n\r\nThat being said, there may be lenders in the UK that may, in the right circumstances, be able to offer you a higher loan to value.\r\n<h2 id="malta-bad-credit">Can you get a mortgage for a property in Malta with bad credit?<\/h2>\r\nMany borrowers worry that their bad credit with prevent them from getting a mortgage in Malta, especially if they gave already been <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/refused-for-a-mortgage\/">declined for a mortgage<\/a> in the past.\r\n\r\nAn advantage for buyers with bad credit is that Malta does not have credit scoring. That being said, for foreigners looking to get a mortgage in Malta, the lender will usually request a reference from their UK bank.\r\n\r\nEven if you don\u2019t have a perfect track record with your bank, the lack of credit scoring in Malta means that all decisions are made by human underwriters, so as long as affordability is good, the cause of the bad credit isn\u2019t likely to repeat itself and you satisfy the rest of their criteria ,you could still obtain the mortgage.\r\n<h3>Learn more about bad credit<\/h3>\r\nIf you have concerns that your bad credit may affect your mortgage application in Malta,\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">speak to an advisor<\/a>.\r\n\r\nAlternatively, if you\u2019d like more information on this see our\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">bad credit mortgage<\/a> information section.\r\n<h2 id="malta-faq">FAQ<\/h2>\r\n<h3>Do I need to speak Maltese to apply for a mortgage?<\/h3>\r\nNo, since English is an official language in Malta pretty much everyone speaks and understands it natively. You can request for all documentation to be done in English too.\r\n<h3>Can I rent out my property in Malta?<\/h3>\r\nA lot of expats buy their property with the intention to\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/">rent it out for income<\/a>.\r\n\r\nIf you would like to do this, you will need to check whether your property meets the requirements needed for a rental permit and if they do, you will need to apply for one.\r\n\r\nFurthermore, any income earned through renting will be subject to Maltese income tax, of which there are three tiers: 10%, 15% and 25%.\r\n<h3>Should I use an online tool to calculate my mortgage in Malta?<\/h3>\r\nLots of borrowers use mortgage calculators to work out how much their mortgage in Malta will be.\r\n\r\nAnd although online mortgage calculators can provide a quick estimate, they can provide inaccurate estimations.\r\n\r\nThis is because an online calculator can\u2019t take all factors that may affect your mortgage into consideration.\r\n\r\nIn fact, lots of people come to us after having used an online calculator, feeling confused after receiving different quotes from different calculators.\r\n\r\nTo truly understand how much you can borrow as well as how much your mortgage payments will be, you need to\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist>speak to a specialist<\/a>, who has real experience in Maltese property and mortgages.\r\n<h2 id="best-advice">Get the best advice from a whole-of-market broker<\/h2>\r\nMany mortgage brokers claim to be whole of market, when in reality, their experience is limited.\r\n\r\nHere at Online Mortgage Advisor, we will only put you in touch with professionals who have experience with negotiating and handling mortgages similar to yours.\r\n\r\nWe know how important accurate advice is and to prevent misinformation, we carefully vet every broker before deciding to work with them.\r\n<h2>Find the best mortgage deal<\/h2>\r\nBuying property in Malta shouldn\u2019t mean that you have to overpay in interest rates and fees.\r\n\r\nSome brokers work closely with a chosen few banks and lenders such as HSBC or Natwest, which can mean that the interest rates and Maltese mortgage offers you see, aren\u2019t necessarily the best on the market.\r\n\r\nThe brokers we work with are completely impartial, with access to a wide range of British and international lenders. This means that they will only recommend a mortgage that suits your budget and preferences.\r\n<h3>Finding the best property<\/h3>\r\nProperty prices can vary greatly depending on where in Malta you intend to buy. Popular seaside towns such as St Julians or Sliema, or towns near the capital of Valletta will generally be more expensive than other areas.\r\n\r\nProportionately, if you\u2019re buying a property as an investment or a holiday home you\u2019ll find that the rental yield in these areas is greater. A popular area is also further up the coast in St Paul\u2019s Bay due to its high population of British Expats as well as pubs, restaurants and tourist amenities.\r\n\r\nMost of the time when properties are bought and sold in Malta they come fully furnished which can save a lot and the place will normally be ready to move in or rent out right away.\r\n<h3>Finding a Buy to Let property in Malta<\/h3>\r\nAffordability for Buy to Lets in Malta is calculated quite differently to the UK.\r\n\r\nDue to Malta being a popular tourist destination, a lot of investors let the property out as\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/buy-to-let-mortgages\/holiday-lets\/">holiday lets<\/a>\u00a0during the summer and on longer term lets in the winter.\r\n\r\nDue to this seasonal cycle and often irregularity of the achieved income much greater emphasis is placed on the earned income rather than the rental yield, with most lenders requiring that the mortgage is affordable on an applicant\u2019s earned income without factoring in any rent achieved.\r\n\r\nThe summer months, though, can be extremely profitable for landlords. Due to English being spoken natively there are thousands of parents who send their children to the island for the summer from countries where English is not natively spoken, to learn it.\r\n\r\nThere\u2019s so much of a demand from the local language schools that they are even paying local homeowners to rent out their spare rooms to students.\r\n\r\nIf you were to rent out a three bedroom flat in the right area to one of the language schools you could quite easily achieve a rental yield of over \u20ac1,000 a week.\r\n<h2 id="malta-expert">Speak to an expert<\/h2>\r\nIf you have questions about getting a mortgage for a property in Malta and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or\u00a0<a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-an-overseas-specialist">make an enquiry<\/a>.\r\n\r\nThen sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. \u00a0\u2013 We don\u2019t charge a fee and there\u2019s absolutely no obligation or marks on your credit rating.