fbpx

BOI and Post Office ditch foreign currency deals

Sarah Davidson

October 5, 2015

They have also stipulated that all assets used as a repayment strategy for interest-only loans must be held in the UK with income paid in sterling. Buy-to-let income must also be received in sterling.

Applications already submitted will be honoured provided they complete ahead of 20 March 2015.

The two lenders are the latest to pull out of offering foreign currency mortgages ahead of Mortgage Credit Directive regulation requiring lenders to disclose to customers where there is a fluctuation in exchange rates of more than 20% after 21 March 2015.

The disclosure triggers an obligation for lenders to offer borrowers the option of switching a loan denominated in a foreign currency into sterling if there is significant exchange rate volatility.

Halifax, Scottish Widows Birmingham Midshires, Nationwide and Skipton building societies have already said they won’t be offering borrowers foreign currency mortgages as a result of the regulation.

Santander and Market Harborough have said they will continue to offer foreign currency mortgages.


Sign up to our daily email