Raising finance can be the first, crucial step to realising your dream of owning an apartment or chalet in a Swiss ski resort. So it's important to get professional advice early on in the buying process. nidski is able to help you find the expert for your ski property purchase.
If you are looking to buy ski property, check out our latest property for sale.
Swiss lenders determine how much you can borrow by taking into account your financial situation and the value of the Swiss property.
This includes 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 33% of your net income. These percentages will vary. As interest is payable every quarter on the capital balance outstanding over that period, the repayments will be higher in the earlier years but will reduce as the capital is repaid.
Swiss lenders require proof of income, and can include earned, pension, investment or rental income.
A 20% minimum deposit is usual, though the bank may ask for 30%.
In Switzerland, there are four main types of mortgages:
1. Fixed-rate - Have a fixed interest rate for a fixed term and a fixed amount.
2. Fixed-rate mortgage with term start date in the future - A variation of the fixed-rate mortgage, whereby the mortgage interest can be fixed up to 24 months before the term start date.
3. LIBOR mortgage - A mortgage for a fixed amount, for which the interest rate is linked to the London InterBank Offered Rate. The movement in the market interest rate is reflected in the mortgage interest.
4. Adjustable-rate mortgage – A mortgage with a flexible term and flexible amount, whereby the interest rate is continually adapted to the current interest level.
Generally the mortgage term in Switzerland ranges from 5-30 years.
The minimum loan size on a Swiss mortgage is CHF 300 000.
Swiss mortgages are unusual in that they are divided into two mortgages. The first accounts for 60 percent of the value of the property, the second for the remaining amount required (typically a further 20 percent).
Click on the following links for further information on buying a ski property in Switzerland.
Fill in our form below for more information from lenders and brokers offering mortgages for property purchase in the Swiss Alps.