The Royal Bank of Scotland and Natwest, two of the UK’s largest banks, will stop offering mortgages to expats from May 19th 2016.
The Royal Bank of Scotland and Natwest, two of the UK’s largest banks, will stop offering mortgages to expats from May 19th 2016.
From then on, applicants must be a UK resident in order to be eligible.
Many financial experts believe that new European regulations on home loans introduced in March have made the process of overseas lending too complex and this is why a number of UK banks have stopped offering mortgages to non-residents.
NatWest and RBS said the decision was made after looking at the level of demand for products and the cost and complexity of providing them safely.
The change will extend to existing expat customers wanting additional borrowing or a facility increase.
In a statement, NatWest commented:
"We regularly look at the demand for our products from customers and balance this with the costs and complexity of providing them safely to customers. In this context we have come to the decision to stop offering new lending to expat customers.”
"This change does not affect our approach to foreign currency mortgages, where an applicant might reside in the UK but be paid in a non-Sterling denominated currency. As long as they are resident in the UK they are eligible to apply for a mortgage with NatWest and RBS."
Applications will still be considered from serving members of the armed forces, UK diplomats and UK consular staff.
Meanwhile Skipton International has stepped up their expat mortgage lending having received more mortgage applications in the first quarter of 2016 than in the whole of 2015.
Besides NatWest and Skipton International, other lenders who will consider expat mortgages include HSBC Bank, Kent Reliance and National Counties Building Society.
