Golf Residential specialises in sourcing effective and flexible finance solutions to enable you to purchase a property or raise equity in Spain.

The aim is to provide you with an independent service that makes the process of purchasing property in Spain as simple and stress free as possible. Our wealth of experience in dealing with Spanish lenders means we can offer you competitive interest rates including exclusive and unique products designed specifically for you.

We provide mortgages through both Spanish and access to UK lenders, dependent upon your specific circumstances and requirements, ensuring you get the best deal available. This means that we can talk to you about any plans that you have for purchasing property taking into account property or assets that you own in the UK or already in Spain. One example: the facility to draw down capital when this is required to make stage payments on a new build property (off plan property). You are then only making repayments on the loan as and when you release it.

We aim to get your finances agreed before you start looking for a property to ensure you have the confidence when choosing your home or investment property. This saves you time and money, enabling you to proceed as quickly as possible.

Why use a mortgage broker?

Our experience has shown that no two lenders will offer the same loan to the same client profile on the same terms. How do you know that you will find the right lender meeting your needs and offering you the best deal?

With more than 30 lending institutions all offering various mortgages based on varying criteria, it's not always true that the one offering the most competitive rate will meet your actual mortgage needs or match your application criteria.

How much can I borrow?

There are two main determining factors, the property value and your income.

Property Value: There are some similarities to how a property is valued compared to the scenario that you may be used to. The key difference is that a registered valuer is instructed to value the property you are purchasing, whereas you may be accustomed to a surveyor to evaluate the purchase. A valuation, in most cases, is similar to a standard survey report. Lenders do not normally ask for structural reports unless under exceptional cases and usually for construction type loans. Note however, that the valuation and the purchase price can differ significantly. Also bear in mind that purchase costs such as the IVA (equivalent to the VAT), agents and legal fees are not used for valuation purposes. As a general rule, it is necessary to allow approximately 3% to cover your purchase costs. We instruct valuations on your behalf with registered valuers recognised by the lending institutions. The valuation fee you pay will generate your "Tasacion" or valuation report, which is presented directly to the lender. The amount you borrow will depend on this report, but is subject to the overall maximum the lender will consider based on your application and type or purpose of the loan itself.

Income: Again, there are some similarities to how income is assessed compared to what you may have been used to. Spanish lenders generally will calculate a ratio of your net disposable income that will be used to repay borrowing and will want to ensure that you have the ability to service the loan. If it is a family or joint purchase then multiple incomes

How many years can I repay over?

Spanish mortgages with terms of up to 30 years are now obtainable.

There is no absolute maximum to the number of applicants. For example if you are in, say, your late 50s but would like a 25 year mortgage, it is possible to add one or more of your independent children or other family members to the mortgage, and the mortgage term can be based on the younger age, either by you being a guarantor, or the second applicants earnings being at the least the same as the primary applicant.

What paperwork is required?

Spanish lenders want to protect the interests of their depositors. Therefore, they will ask for paperwork confirming the affordability of the mortgage and proof of your financial position.

What rate will I be offered?

Mortgages normally follow Europe’s variable base rate, called Euribor. Currently, Sept. 2006 the base rate is 3.73 %. Interest rates are therefore very attractive with the rate applicable to your mortgage in the region of 4.0-4.5%.

What does it cost?

If you are purchasing a property in Spain it is normal that you will need to allow 10-11% of the purchase price for costs. This includes an amount of 7% IVA (VAT equivalent), purchase and mortgage fees.