Expats who are intending to return to the UK will face increased difficulties in obtaining a mortgage after a major high street bank announced today it will no longer accept mortgage applications from people living overseas.
Lloyds Banking Group confirmed on Thursday it is to stop mortgages for expats from tomorrow (Friday 9 November) as it conducts a review of its expatriate mortgage programme. The Group stresses that existing expat clients would not be affected by the new policy.
Previously, Halifax, part of the Lloyds Banking Group offered 75 per cent mortgages to expats who would return to the UK within three years.
Nigel Green, the chief executive of the deVere Group, says: “This is a major blow to the many British expats who are, due to the fragile economic situation in the eurozone, returning to the UK.
“Lenders offering expat mortgages were always few and far between but Lloyds was usually seen as a viable option. The move now leaves NatWest with an effective monopoly of this market.
“However, some experienced brokers are still able to offer additional expat mortgage opportunities. People who are currently living overseas and who require a UK mortgage should speak to their financial adviser.”
A Halifax spokesman says: “Lloyds Banking Group is undertaking a review of its mortgage proposition for expat customers.
“Whilst this review is on-going, mortgages and further advances will not be available for new applications from expat customers. Existing expat mortgages are unaffected by this review.”
iExpats.com understands that Lloyds Banking Group will accept new applications and further advances up to 8 p.m today.