Already expanding from Spain into France, Portugal and Italy in 2007, the overseas firm has revealed plans to add more new markets before the year is out.
Moroccan interest rates are set twice yearly on 1 January and 1 July and banks are given a bottom and top range rate which they can apply to mortgages – sometimes with a difference of as much as 1 per cent. All banks must work within these bands.
IMS offers an overseas Process & Packaging arm for brokers and IFAs keen to provide mortgages in Morocco as well as Spain, France, Portugal and Italy.
Heather Chambers, product development director for IMS said: “The Moroccan mortgage market is very much in its infancy and not all Moroccan banks will lend to foreigners but we have carefully selected three banks with a wide range of products.
“The application process and bank behaviours are very different from the UK so clients should take good care and advice before deciding upon the right product to suit them. Our aim is to offer advice on a case-by-case basis and whilst it is important for us to have the facility to secure loans in Morocco, it will not always be the most appropriate solution.
“Several brokers are already providing mortgages in Morocco but their literature fails to inform the client of some important aspects such as the fact that a tax is taken every month by the Moroccan government of 10% of the interest payment made. Whilst this would not necessarily prevent people from securing a mortgage in Morocco, it is certainly a consideration that should be taken into account when weighing up options.”
