Homes Overseas has reported that changes are to be made to the Italy's mortgage system and this may be of interest to those looking for property in Italy as government has reached compliance with Italy's banks to revert mortgage payments back to lower levels, which were last recorded in 2006.

Banks will switch variable-rate mortgages to fixed-rate ones and with a fixed-rate mortgage, the rate does not change over the life of the loan. However the changes are not yet been finalized and the date of implementation is also not announced. With interest in the area increasing, now may be the ideal time for property investors buying in Italy to make their purchase.

The Italian Prime Minister Silvio Berlusconi's has commented that getting back to the mortgage rates of 2006 is now being worked on and the repayment period for mortgage holders will be extended. Economics minister Giulio Tremonti said that the benefit of fixed-rate mortgages is if there is any increase in average interest rates during the originally agreed mortgage, then the mortgage period will be extended. Instead, if rates have fallen, then the banks will compensate the homeowner with the difference.

Vanessa Bird of financial services company Baydonhill stated that the strength of the Italian market is due to its broad appeal and the reason for huge influx of investors is due to the vast variety available in Italy in terms of age, financial circumstances and motivation for buying.

This comes after that Foreign Property Buyer has recently highlighted Italy as a more steady and reliable investment than eastern European market.