Buy to Let Mortgage Malta

There’s great news out this week for property investors examining their options in the Maltese property market; it’s now possible to get a buy to let mortgage in Malta from HSBC bank for the specific purposes of purchasing investment property.

Property prices in Malta have been climbing steadily and healthily over the past decade with the price rises sustainable as the desire to live in Malta is intense and the availability of property stock is physically limited by the geographic restrictions of the island – therefore those who want to tap into the inimitable real estate investment potential in Malta can now do so with the help of a buy to let mortgage.

The attraction of such a mortgage product comes in part from the fact that the predicted income an investor will generate from their investment property in Malta goes towards the affordability calculations for their mortgage.  This means that it is possible for investors to increase the amount they want to borrow based on their predicted rental income and in turn this can broaden the range of properties that an investor can view.  This is important in a market like Malta’s where property prices are climbing all the time…it means an investor who might previously have thought they could not afford a way into the Maltese property market is now afforded more options.

Another benefit of a specific buy to let mortgage product is that it is not treated like a commercial loan and so interest rates tend to be far more attractive and the loan period can be for up to twenty five years.

There has been a significant growth in demand for rental accommodation in Malta which means that this is a timely product to introduce to the real estate market.  The increase in demand for properties to rent in Malta comes in part from the local market which is leaving home earlier and also struggling to get a foot on the property ladder because of increasing property prices. 

As with elsewhere across Europe a previously conceived stigma attached to those who rent their homes rather than own them no longer exists and so for far more people it is not only necessary to rent property in Malta it is also an attractive choice.  This opens the market to more property investors who like the feel of the real estate market in Malta which is generally considered to be safe and built on stable foundations.  The title deed and property registration systems in Malta for example are excellent as are the laws governing the purchase and on going ownership of property which makes the market appeal to more cautious investors.

The other side of the increasing demand for property to let out in Malta comes from the foreign market – either in the form of tourists looking for short term lets or retirees and expatriates moving to Malta and either seeking property to purchase or waiting for their new homes to be completed or renovated.  This means that a property investor has a far broader range of individuals to target from whom he can generate a rental income.

For more information about HSBC’s new product visit the bank’s Maltese website: - http://www.hsbc.com.mt/

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