Aldermore rules out foreign currency lending post MCD

Ryan Bembridge

December 21, 2015

household finances during pandemic

Aldermore Bank has ruled out accepting loans in a foreign currency when the Mortgage Credit Directive implementation takes place in March 2016.

The bank will not accept income in a foreign currency across its owner-occupied and buy-to-let ranges which is a continuation of its current policy.

For interest-only customers Aldermore will stop accepting repayment strategies in a foreign currency, such as with the sale of a property abroad.

Woolwich, TSB and Santander have confirmed they will offer loans to borrowers who are paid in a foreign currency, while major lenders such as Lloyds, Nationwide, Skipton and Bank of Ireland have decided to cease such lending.

The lender will adopt the Key Facts Illustration + from next year, although the bank will have to switch to the European Standardised Information Sheet (ESIS) by March 2019 as European rules dictate.

Aldermore will also offer consumer buy-to-let, for which applications will have to be identified at the point of submission and it will implement the MCD’s seven day reflection period from the date of the mortgage offer.

Charles Haresnape, Aldermore’s group managing director, mortgages, said: “With any new piece of regulation, it is vital that lenders and brokers make sure that customers are kept up to date with any developments and how changes may affect them.

“Whilst any new regulation can be a bit unsettling, the positive communication between lenders, intermediaries and customers should really help.”

Sign up to our daily email