Investec Private Banking will continue to offer residential mortgages to UK based borrowers who may receive part or all of their income in a foreign currency, after the new MCD rules are introduced in March 2016.
“An increasing number of lenders have announced their intention to pull out of the foreign currency mortgage market, but Investec Private Banking remains committed to supporting borrowers with income generated partly or wholly in another currency,” said Peter Izard, business development manager at Investec Private Banking.
“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.”
Investec Private Banking will only provide mortgages in sterling and the loan must be secured against a property located in the UK. However, the borrower can be a foreign national paid in a foreign currency, either resident in the UK or abroad.
Izard 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.”