The Royal Bank of Scotland and its NatWest arm have become the latest UK lenders to stop offering mortgages to expats.
The policy will take effect from 19 May and requires applicants to be resident in the UK in order to qualify for a mortgage. Included in the policy are expat customers who are requesting additional borrowing.
Serving members of the armed forces, UK diplomats and UK consular staff, however, may still have applications considered.
No reason was given for the change in policy.
A new EU regulation on home loans, the Mortgage Credit Directive, may be behind the decision. It came into force on 21 March and has added to the data reporting requirements as well as the need to apply for a “passport” for any UK lender conducting mortgage activities in the EU.
This greater burden may be deterring lenders.
The number of British lenders offering expat mortgages has been dwindling in recent years, although some banks’ international divisions nd some building societies remain open to applications.
Comments
At the extremity of suffering being those intending to pay off a mortgage from what they assumed would be their tourism business takings. As perfectly understandable in a more developed country. Years passing by with no completion in sight. But the payments on the loan needing to be continued or the already substantially improved property handed back or sold on at great loss ...