Swiss mortgages
alpineswitzerland has formed contacts with many banks across switzerland which we feel offer the best mortgage deals, with low interest rates(on average lower than the UK) and with deposits as low as 25% of the purchase price.
What we offer
If you need a mortgage to purchase your property we advise that during your first visit to Switzerland you include time to meet with the bank to ensure that you don't waste time looking for properties over your budget. After discussing your property needs with us we will introduce you to one of our partner banks which best suits your needs. The meeting with the bank will then define the finances that are available and this will help you to plan the next steps. alpineswitzerland can also arrange the bank appointment for you and give you the advice on the correct documents to take with you.
All of our partner banks have staff who speak English and they are conveniently located in each region so you are never too far away from your bank. We have chosen many different banks as partners, from local cantonal banks to the big world known banks, each specialise in different areas and offer the best deals for you. Our partner banks offer services such as pure investment banking and numbered (anonymous) accounts, a wide range of mortgages with flexible payback schems, low interest rates(on average lower than the UK) and the smallest deposit possible(an important factor for the investment buyer). Many Swiss banks require a minimum deposit of 40% for a mortgage but we have partners who accept deposits from 25%.
To purchase your property you will need to open a bank account in Switzerland to make the Notaire money transfer, to pay local bills, pay general running costs and receive any rental income payments if you will use your property as an investment. Our partner banks can offer basic accounts that are linked to your mortgage and which give you a credit card and internet banking facilities.
Fees
Swiss bank fees vary but you should expect to pay around CHF500.
Lending Criteria
The two main criteria for determining how much you can borrow are the value of the property and your financial situation.
Most Swiss lenders take into account your existing liabilities, including mortgage/rent payments, personal and bank loans, and maintenance payments. When these are added to your proposed Swiss mortgage payments, the total must not exceed 30-35% of net income. These percentages can vary.
Proof of income is required in all cases. This can be made up of earned income, pension, investment, or rental income. However, not all lenders take all of these into account when determining how much you can borrow.
Insurance
Buildings insurance is compulsory but not all lenders demand that you take out life cover.