K
Key Mortgages S.L
New Member
Mortgages in Morocco are available for non residents up to a maximum of 70% of the property purchase price. The process and communication with bank can be difficult and slow so patience with them is required.
Rate bands are set twice year in January and July by the government and each bank must operate within these bands. The banks can only do one mortgage per client as the law in Morocco only allows you have one mortgage. You can buy as many properties as you like but all except one must be bought cash. Each bank will ask you to make a sworn declaration that you have you have no other mortgages in Morocco. It is not clear how the authorities would treat a non resident who did not declare a previous mortgage and we would not suggest putting it to the test.
The banks will assess all liabilities in the UK and look for clients to not exceed in the region of a 35% debt to income ratio based on after tax incomes. The banks will not assess in general buy to let incomes from the UK but this can be on a case by basis and will depend on how exposed to this the client’s incomes are.
When thinking of taking a mortgage in Morocco for completion there are two important things for you to consider.
One is that the government levy a tax of 10% of the interest payment of the mortgage monthly which is deducted by the bank at source and paid on your behalf so does increase the costs each month by this amount.
The second and most importantly is what you are able to do at a later date with any profits you make on sale. Below is our current understanding professional legal advice should be sought to clarify how this might affect you.
Rate bands are set twice year in January and July by the government and each bank must operate within these bands. The banks can only do one mortgage per client as the law in Morocco only allows you have one mortgage. You can buy as many properties as you like but all except one must be bought cash. Each bank will ask you to make a sworn declaration that you have you have no other mortgages in Morocco. It is not clear how the authorities would treat a non resident who did not declare a previous mortgage and we would not suggest putting it to the test.
The banks will assess all liabilities in the UK and look for clients to not exceed in the region of a 35% debt to income ratio based on after tax incomes. The banks will not assess in general buy to let incomes from the UK but this can be on a case by basis and will depend on how exposed to this the client’s incomes are.
When thinking of taking a mortgage in Morocco for completion there are two important things for you to consider.
One is that the government levy a tax of 10% of the interest payment of the mortgage monthly which is deducted by the bank at source and paid on your behalf so does increase the costs each month by this amount.
The second and most importantly is what you are able to do at a later date with any profits you make on sale. Below is our current understanding professional legal advice should be sought to clarify how this might affect you.
