Buyback after life change (divorce, death)
For whom?: Co-borrowers after separation, succession, spouse death — Average gain: Legal clarification + monthly adjustment to single income
Divorce or co-borrower death disrupts credit balance contracted by two. Buyback in this context allows transferring credit to single borrower name, readjusting monthly to their income and releasing other party from any responsibility. Complex legal and banking procedure but essential.
When it's relevant
Relevant if: divorce pronounced with property attribution to one ex-spouse, co-borrower death (death insurance intervened or not), co-borrower departure abroad. Act quickly: otherwise, joint liability continues.
How it works
Legal analysis by notary. Solvency assessment of sole taker (income sufficient to support full monthly). Credit buyback by new bank (or joint release in current bank). Mortgage release with re-registration under single name. Possible soulte payment to ex-spouse.
Concrete example
Divorce 2025: mortgage 1.2M MAD remaining 800K. Mr. keeps property (estimated 1.5M). Buys back credit in own name at 4.5% over 15 years: monthly 6,120 MAD. Pays 350K MAD soulte (50% of accumulated capital gain) to Mrs., financed by additional credit.
Advantages
- Definitive legal clarification (no more joint liability)
- Monthly adjustment to single income
- Possibility to change bank on this occasion (better rate)
- Death insurance activation (if widowhood): credit sometimes paid off
Points of attention
- Significant notary fees (soulte, release, re-registration: 3-5%)
- Single income must support full monthly (33% rule)
- Death insurance: verify if surviving spouse covered
- Long procedure delay (3-6 months): continue paying meanwhile
Documents to prepare
- Divorce judgment or death certificate + succession act
- Property title mentioning co-holders
- Current credit amortization schedule
- Sole taker payslips (solvency)
- Death insurance certificate (if applicable)
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