NatWest Intermediary Solutions has offered a lifeline to borrowers who get paid in a foreign currency by confirming it will continue to offer such loans post-Mortgage Credit Directive.
Of all the lenders to announce their MCD changes, just Woolwich, TSB and Santander have confirmed they will offer loans to borrowers who are paid in a foreign currency.
While many lenders did not offer foreign currency loans in the first place, a number of larger lenders like Lloyds, Nationwide, Skipton and Bank of Ireland have decided to cease such lending.
NIS says it will monitor only the primary non-Sterling denominated currency for each mortgage. For interest-only mortgages, it will continue to accept only Sterling-based repayment strategies but it will accept foreign currency income.
The MCD requires lenders to disclose to customers where there is a fluctuation in exchange rates of more than 20 per cent.
NIS has confirmed it will use the European Standardised Information Sheet rather than the KFI+.
The MCD introduces regulated consumer buy-to-let for remortgage customers not acting for business purposes. The lender says it “plans to monitor the emerging market” for these mortgages – which it expects to be small – and will decide whether to introduce these loans before the end of 2016.
NIS will implement its post-MCD proposition in mid-January.
NIS service development manager Sarah Taylor says: “The MCD is a significant piece of legislation for the industry but one that we are well-placed to deal with. We believe it is sensible to adopt the requirements in mid-January well ahead of the deadline. By switching directly to the new Mortgage Illustration, it will mean making only one change to our systems which has to be good news for intermediaries.”