Royal Bank of Scotland and its NatWest arm have been implicated of turning their backs on Britons living abroad after ending up being the most current UK lenders to stop providing mortgages to expats.
The banking brands did not provide a reason for the change in policy, which implies that from 19 May, candidates must be resident in the UK in order to be eligible for a home loan with NatWest or RBS.
However, some home mortgage experts have claimed brand-new European regulations on home loans which took impact on 21 March have indicated more work for lenders, as they have actually included higher complexity to the procedure.
NatWest and RBS said they would no more provide home mortgages to expats, which consisted ofthat included those expat customers requesting extra loaning. However, applications will still be considered from serving members of the armed forces, UK diplomats and UK consular personnel.
Home mortgage broker Enness Private Customers stated: “It is extremely frustrating to see yet another high street powerhouse turn its back on hard-working British expats.”
It included: “We suspect this is as much a function of too much company coming its method as a result of the constant stream of lenders closing their doors – most likely compounded by the impacts of the European home loan credit directive in March.”
Islay Robinson, primarypresident of Enness, stated that up until a few years ago all the huge UK lenders offered expat mortgages, but given that 2010-11 “one by one they stopped”. Some local structure societies have also taken out of the market. Robinson said higher costs connecting to processing and regulation may be an element, but he added: “There is a huge demand for expat home mortgages.”
Numerous of the banks’ global departments still offer expat home mortgages, as do numerous UK private banks and some structure societies.
Some have lists of nations they “do not support” – for instance, Guernsey-based Skipton International, part of Skipton structure society, has a “restricted country list” that consists of Australia, Russia and South Africa.