Type of loan
Repayment or interest-only finance is available for the purchase or remortgage of Swiss property.
Purchaser
Swiss and foreign borrowers domiciled in Switzerland. Non-resident foreigners can also purchase property, subject to federal law.
Loan size
The minimum loan size on a Swiss mortgage is CHF350,000. There is no maximum but it must not exceed 80% of the mortgage valuation or purchase price (whichever is lower).
Term
5 to 30 years up to age 70.
Currency
Swiss Francs
Fees
Swiss bank fees vary but are typically CHF500. The cost of the mortgage valuation depends on the size and location of the property. You should also allow for notary fees of up to 5% of the purchase price.
Lending criteria
Understand Swiss mortgage lending criteria with Savills Private Finance.
Lenders determine how much you can borrow by taking into account the value of the Swiss property and your financial situation.
Most Swiss lenders take into account your existing UK 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% of your gross income (33% of net income). These percentages can vary.
Swiss lenders require proof of income. This can be earned income, pension, investment or rental income. However, not all lenders take all of these into account.
lnsurance
Swiss property insurance advice from Savills Private Finance.
Buildings insurance on Swiss property is compulsory. Most Swiss lenders do not demand that you take out life cover. SPF can provide independent advice for all your insurance needs when buying property abroad.
Valuation
Understand Swiss property valuations and their bearing on mortgage loan amounts.
Loans are available up to 80% of the mortgage valuation. Swiss banks will only lend on the basis of this valuation, not the purchase price.
Legal issues
Swiss property laws and legislation.
There are various tax implications from a UK and Swiss perspective, which you must consider before buying property in Switzerland. There are also local registration requirements depending on the amount of time you spend at your Swiss property each year.
Do not sign anything until you have taken legal advice and don’t put a deposit down on a Swiss property before ensuring that it is refundable. You should also check what legal costs and government taxes you are liable for before committing yourself to a purchase or remortgage in Switzerland.
Completion
Swiss mortgage loan completion information.
In order to complete on your property in Switzerland, you must be present along with the notary, vendor, lawyers and lender’s representative. A power of attorney may be used to sign the deeds on your behalf. The seller will hand over the keys and you will become the official and legal owner of a Swiss property. Congratulations!
Apply for a mortgage
Applying for a mortgage to buy a property in Switzerland.
It is advisable to arrange a mortgage in principle before committing to a purchase. This will enable you to find out how much you can borrow, so you don’t waste time looking at Swiss properties beyond your budget. Even if you haven’t found a property in Switzerland yet, the SPF international team can help you establish your affordability and issue an approval in principle based on your financial situation.
If you have already found a Swiss property, SPF will send you a mortgage application pack.
Should you require funds to put towards a deposit, or if you don’t qualify for a Swiss mortgage, we may be able to help raise finance for your proposed property in Switzerland.
Contact SPF on +44 (0) 20 7877 4710 or email international@spf.co.uk