View more on these topics

Nationwide stops new lending where income is in foreign currency

Nationwide has stopped lending to new borrowers who get paid in a foreign currency.

The lender says it “may” consider income in a foreign currency for existing customers who are looking to move home and where no additional lending is required.

There is no change to the treatment of term variations or changes to repayment type but any foreign currency income must be converted to sterling.

Nationwide says it has made the change due to the new rules around foreign currency loans in the European Commission’s Mortgage Credit Directive. The Directive insists that lenders offer the borrower the opportunity to switch the currency of their loan if their national currency falls or increases in value by 20 per cent in relation to the credit currency. There are also increased disclosure requirements at the offer stage.

A spokeswoman says: ”Nationwide is making these changes as a result of our regular reviews to ensure consumers are protected, particularly given the scale of a mortgage commitment, and to ensure we are best placed to comply with the spirit of the Mortgage Credit Directive, which comes into force in March 2016.”

Coreco director Andrew Montlake says: “It’s a shame because in London we do find a lot of examples where part of the borrower’s bonus is paid in US dollars, for example. Although it won’t affect a large proportion of the market, some people will be affected.”


60 seconds with… Richard Pike, software sales and marketing director, Phoebus

Post-MMR, what types of technological improvements are lenders looking to make? Much of the MMR is based around transparency, accountability, auditability and capacity to report performance pre- and post-completion. This created work for most IT departments. More agile technologies, such as Phoebus, handle changes more easily and cost-effectively. We will see more investment in technology, […]

Cover pic

Cover story – MMR: One year, many changes

Twelve months on from the MMR, Mortgage Strategy investigates how the biggest regulatory upheaval in a decade has rocked the mortgage market in unexpected ways, both positive and negative


Mortgage prisoners hit as FCA reveals MCD final rules

Mortgage prisoners have received a blow after it emerged lenders will be forced to apply affordability checks on all remortgage customers who come from rivals to comply with the EU’s Mortgage Credit Directive. In a paper documenting the FCA’s final rules on the implementation of the directive, the regulator said it had noticed a “conflict” […]


Aviva UK & Ireland Life’s Barral decides to move on

Aviva chief executive of the UK & Ireland Life business David Barral is to leave the insurer after shareholders backed Aviva’s takeover deal of Friends Life. Shareholders of the two insurers gave their support for the £5.6bn deal last week, which is set to create the largest insurance and savings business in the UK. It […]

Benefits - thumbnail

Global benefits predictions for 2015 from Jelf International

According to Doug Rice, managing director of international services, in 2015, managing their international duty of care will become an increasing focus for UK-based overseas organisations in both managing their short- and longer-term challenges. As a result, strong independent advice and innovative technological solutions will become more important than ever in managing their global benefits.


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • The Cynical Broker 2nd April 2015 at 8:20 am

    Every time Nationwide takes a backward step and claims it’s to “ensure consumers are protected, particularly given the scale of a mortgage commitment”, I have to chuckle and then watch their TV ad proclaiming that at Nationwide “we’re on your side”! Who say’s irony’s a forgotten art ??