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Investec commits to offering foreign currency mortgages – exclusive

  • 19/11/2015
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Investec commits to offering foreign currency mortgages – exclusive
Investec Private Banking has confirmed that it will continue to offer residential mortgages to UK-based borrowers who receive part or all of their income in a foreign currency.

The announcement comes shortly after Natwest revealed it would continue to offer foreign currency mortgages, as a number of lenders have said they will pull out of the market in light of rules brought about by the Mortgage Credit Directive (MCD).

Under the MCD, which will be implemented 21 March, lenders which choose to continue to offer foreign currency mortgages will be required to introduce customer safeguards to protect borrowers against fluctuations in exchange rates.

Investec has said it will only provide mortgages in sterling and the loan must be secured against a property in the UK. It added that the borrower can be a foreign national paid in a foreign currency, either residing in the UK or abroad.

Peter Izard, business development manager at Investec Private Banking, said: “We deal with a lot of borrowers who work and own property in the UK who are paid at least part of their income in a foreign currency. A classic example is a banker based in London who works for a European or US bank and receive their salary in sterling, but also receives a bonus and share options in euros or US dollars. Under the terms of the new MCD rules, this is classed as a foreign currency mortgage.

“If a borrower has assets held in a foreign currency and they are used to repay part of their mortgage, then the mortgage will also be classified as a foreign currency loan,” he added.

“With so many international corporations having a strong presence in London and other parts of the UK, we believe it is important that we to continue to support this significant market and ensure our clients have access to competitive mortgage finance.”

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