FISCUS MORTGAGES - INFORMATION AND ADVICE

Mortgages & Property in Monaco

Guidance notes for purchasing a property in Monaco.

How Conti Can Help You to Finance Your Overseas Home By Using The Monaco Property As Security

If you require finance to purchase your overseas property, then Conti Financial Services - Licensed Credit Broker (who has had over 20 years experience in the market) could assist. Using the Monaco property as security a Repayment Mortgage in Euros only is available up to 80%.

Based on the valuation or purchase price, whichever is the lower, of the Monaco residential property, French Nationals can borrow up to 80%, EU Nationals up to 70% and all other Nationalities on a case-by-case basis. All loans are either for purchases or re-mortgages for Home Improvements only assuming a minimum loan of € 75,000 and no maximum. Mortgages for all other purposes are dealt with on a case-by-case basis.

The term of the loan is from 7 to 25 years, and could possible be available up to age 80. Current interest rates as at 16th February 2005 are from approx 2.95% Variable in Euros loans. Fixed rate loans are also possible in Euros at higher rates and more competitive Variable Rates – with lower margins ABOVE EURIBOR after the first year - are available for 60%-70% loans.

PLEASE CHECK LENDER’S MARGINS AFTER THE FIRST YEAR WHEN MAKING ANY COMPARISONS.

You will find below an example of a loan to assist you based on a Repayment Mortgage in Euros and to this must be added the cost of a Mortgage Protection Policy, dependent upon age.

- Written Quotations Available On Request -

Repayment mortgage of approx € 70,000 over a period of 20 years at a initial discounted interest rate of 2.95% variable for the first year and then 1.70% above EURIBOR thereafter = approx € 390.60 capital & interest per month for the first year and then approx € 418.80 thereafter = a total approximate amount payable over the term of € 102,928.00 including capital, interest, arrangement and survey fees.

The income criteria is variable
Bank Reference and Employers or Accountants reference if self-employed
Existing borrowing in the UK and Overseas will be taken into account

ALL ENQUIRIES WILL BE DEALT WITH ON A CASE BY CASE BASIS & ARE SUBJECT TO SATISFACTORY CREDIT STATUS & VALUATION

Please note, that as the loan is secured on the overseas property, it is not covered by the UK Consumer Credit Act or the Financial Services Authority

How much can I borrow & what proof of income is required?

Please note, that there are no non-status/self-certification mortgage facilities available in Monaco (although renting out your property is permitted), all loans need to be supported by a minimum requirement of proof of income, i.e. if employed - copies of your last three month's payslips & copies of your latest P60/Employer’s Reference together with copies of your last 6 month’s Personal Bank Statements will be required or alternatively if you are self-employed - copies of your last three years Audited Accounts & copies of both your last 12 month's Business and last 6 month’s Personal Bank Statements will be required on application.

Unfortunately in Monaco the Monaco Lenders will NOT take into consideration any proposed Rental Income from the property for mortgage purposes/repayments.

Your loan is based on your joint net “take home” pay and is calculated on an affordability basis. All your existing liabilities including any mortgage/rent payments, personal and bank loans, credit cards (if the balance is not cleared on a monthly basis) and any maintenance – ie: Divorce - payments together with your proposed Monaco mortgage payments must not exceed 35% of your net monthly income.

Example:

Net joint monthly income £ 2,500 times 35% of that figure is £ 875 minus existing monthly mortgage payment £ 300 – No other liabilities. This leaves a balance of £ 575 for a proposed Monaco Mortgage payment.