There are a few od us that are a bit further on in the buying process. I'm using CBA Law. They offered a £1k all in deal for villas when I contacted them back in June. No idea if that deal is still available. I've found CBA to be OK. I've needed to hound them once or twice to gt what I wanted done in a timely fashion, but I'm quite happy doing that.
Don't have much nitty gritty on mortgages, but I believe existing Moroccan mortgages tend to be over short to medium terms and the amount they will lend you is based on your net free income in UK, not rental you expect to get from your Moroccan property. If there are interest only mortgages you can bet they will be less competitive than the rates given for capital repayments. This is a relatively new mortgage market where terms are shorter than we are used to in UK and interest rates less competitive. Seems only logical that the mortgage providers will be more cautious with interest only lending or seek to gain a reward (through higher set up fees or higher interest rates.)
This may be something that Mac101 has looked more closely at. I know someone posted something about this in past fortnight on ono of the forums, but can't remember which!
Hi. Here are a couple of threads that I posted on the Saidia forum about mortgages - it might be of some help to you.
A lot of agents have promoted to me the fact that you can take out an interest only mortgage in Morocco for the first couple of years until tourism is established in Morocco and the rental market takes off.
Whilst an interest only mortgage doesn't appeal to me, some people might be swayed by the fact that their payments will be kept to a minimum. Quote from Abby Aron (author of Buying a House in Morocco)......"Moroccan mortgages are based on repayment only ie loan and interest on it are repaid together". It looks like interest only mortgages wont be available?
Perhaps this is something that the banks will change with the increased mortgages being drawn or is this something that has already changed??
Another thing that I was advised by agents was that mortgages will be "non status" ie no checks will be done, just as long as you own at least 40% of your property you'll be granted a mortgage. Abby Aron advises that "banks will allow you to borrow up to 40% of your monthly net salary as your maximum monthly mortgage payment. For example, if you earn £2k per month, you'll be able to borrow up to £800 as your monthly mortgage repayment.........To obtain the mortgage, you need to provide proof of income through your last three months pay slips or six months bank statements in combination where applicable, with a letter from your employer. No prior credit checks are undertake and no note is taken of any pre-existing obligations such as other outstanding loans".
Does this therefore mean that if the lowest earner in a family (say the wife who is a homemaker) is planning to put the property in her sole name for tax reasons, will she in actual fact be able to secure a mortgage on that property if she has little or no income??
Is it the same as UK mortgages....if your names not on the title deeds of that property then your salary can't be taken into consideration for mortgage purposes??
Agents dont tell you these things..........they just make it sound simple.
Hi this is some info I got sent to me today on mortgages - just thought it might be of interest to some considering mortgages -
'Agricole is a mortgage company who can offer 95-100% mortgages on Completion (I presume thats 95-100% of the remaining 60% balance?)
These are status mortgages and is dependant on earnings.
They can be taken for 15-25 year periods
You have to be younger than 75 years of age, will need 3 salary slips, 3 bank statements with proof of salary, copies of passports and a letter from your employer including verified job and salary.
The rate will be about 5.32% for terms of 7 years or less and 6.32% for 7 years and over.'
Im going to enquire as to the title deeds ie if just in one sole name can a spouse/partners income be considered for mortgage purposes.
many thanks for your post - you have given me something to think about and actually reserach - as yes agenst do make it sound all very simple when it comes to getting the mortgage!
Rorypops, I'd suggest taking legal advice about putting a property in one name only. You may find you save some income tax in the short-term, but then end up with much bigger capital gains tax or problems with inheritance. If the property is in a single name, I would very much doubt that someone else's income will be taken into account. I may well be wrong on this, but do get proper paid-for advice before doing something you may pay dearly for in the future.
