Buying In Corfu With A Mortgage
It is becoming increasingly popular for Europeans to buy their property in Corfu with locally arranged mortgages. Many of them visit with the intention of buying and know that they will probably find a suitable property, but they do not realise that if they do not bring some paperwork with them, they will have an unnecessary second trip to formally complete application forms, as the application cannot be signed until the paperwork originals are inspected by the bank. Although they can do a general power of attorney with a local lawyer to cover the purchase of the property, this does not cover the mortgage application forms for the bank. Therefore if you think that you have a fair chance of finding a property, either on this visit or in the near future, it is a good idea to bring original paperwork with you, and we can arrange for you to visit the bank to begin the mortgage process in order to obtain a personal ‘agreement in principle’ based upon your circumstances, which can then proceed as soon you find the right property.
The paperwork required (and it MUST be the originals, for each person who will feature on the loan application) is:
If you are an employee, at least 2 years of P60s (end of year tax certificate) plus at least one current payslip. A utility bill for your current place of residence is often required and you will have to give information on your current liabilities in your home country. A bank reference from your usual bank is also helpful. If you are self employed, or have your own company, you should have copies of your last 3 years accounts, plus documentation from the tax office to prove that your accounts have been submitted to them and any tax due has been paid. If you are a partner in a company, then you should also have some documentation to prove how much personal income you derive from the company.
The bank will take copies of all documentation and your passports and return the originals to you. At this point, they can begin the application and give you information on the various products available, rates, terms, etc. If you then do not find a property immediately you can leave the application in abeyance, and if you do, then the procedure is already under way.
Banks here are still offering competitive loans on properties and are keen to have European clients, but they are fairly rigid in their initial requirements, so it really does help if you have the information with you when you come to Corfu to look for your property.
Corfuhomefinders and Corfu Premier Property have a good working relationship with many of the banks and are happy to introduce you to those who would be the most suitable for your personal requirements.