View more on these topics

Skipton to pull out of foreign currency loans as it reveals MCD plans


Skipton Building Society has announced how it will comply with the Mortgage Credit Directive and says it will stop lending to borrowers who earn in foreign currencies.

From 1 October, the society will no longer accept applications from borrowers who earn their income in a foreign salary. Lloyds yesterday announced it would also stop this type of lending.

The society says it will adopt the European Standardised Information Sheet, rather than implement the KFI+. It hopes to have launched this by the new year.

Skipton head of products Kris Brewster says: “We feel it’s important that we implement the new MCD rules promptly to ensure that both we and are broker partners can deliver the transition smoothly and professionally for our mortgage customers, we really empathise with our broker partners who will have to deal with yet more changes in the mortgage industry so close to the recent changes under MMR.

“We want to reassure brokers and help them as they navigate their way through this new legislative challenge. That’s why we’ve opted to issue the ESIS from the start, rather than implement the KFI+ and then later down the line move on to the ESIS. Launching early will also ease transitional pipeline challenges around binding offers and cooling off periods.”

It also says it will offer consumer buy-to-let.

Brewster says: “We believe consumer buy-to-let is massively important in aiding customer mobility, particularly the need for let to buy solutions to remain on offer in the marketplace. Brokers have enough going on in their worlds without needing the added confusion of which lenders are doing what and when, so we’re happy to be up front and honest in sharing our plans with them and our commitment to do it right first time.

“Unfortunately the new rules do mean from 1 October we will be unable to accept applicants who earn or plan to repay their mortgage from sources of any currency other than sterling. It simply isn’t cost effective for us to manage the currency risk.”



Cover story: Long-term commitment

Increasing numbers of buyers are seeking mortgage terms of 30 years-plus to make their monthly payments more affordable – but how sensible is this?


Tax relief cut ‘won’t harm sector’

The Chancellor’s move to curb tax relief on buy-to-let mortgages is unlikely to dampen activity in the sector, Nationwide Building Society’s senior economist has forecast. George Osborne’s decision to begin tapering tax relief for buy-to-let borrowers to the basic rate, starting in April 2017, will not deter landlords from investing in retail properties, according to […]

Pad Bamford

Analysis: FTBs need global solution on finance

If you thought the challenges facing first-time buyers were a particularly British issue, the latest research results from ING International should put paid to that. In a survey of 15,000 people, many agreed it was increasingly difficult to secure that first property, regardless of which country they lived in. Admittedly, only people from Luxembourg (94 per […]

Together logo

Blemain Finance parent rebrands as Together

The parent company of Blemain Finance and Lancashire Mortgage Corporation has today pulled all of its lending arms under one bramd – Together. Previously, Jerrold Holdings offered residential and commercial loans through various different brands, including Auction Finance, Bridging Finance and Cheshire Mortgage Corporation. However, the specialist lender will now offer the same products under […]

Jonathan Samuels

Dragonfly CEO off to new venture

Dragonfly Property Finance chief executive Jonathan Samuels is to leave the bridging lender to set up a “new finance venture”. Head of sales and marketing Mark Posniak will replace Samuels. It is not known what area of financial services Samuels’ new firm will operate in but Dragonfly confirms it is not in real estate and […]


News and expert analysis straight to your inbox

Sign up