Santander to block mortgage applications from overseas buyers
Brexit talks have slowly started to emerge in the national media over recent weeks as the UK’s transition period nears its end.
Santander have now thrown their hat into the ring and have revealed that they will only allow UK residents to make mortgage applications for residential and buy-to-let mortgages from 1 January 2021.
They are the first big lender to announce their intentions.
The lender has set out further requirements for other products, detailed below:
- Existing borrowers who live in the UK but are foreign citizens, and who have a deposit or equity of less than 25 per cent and use their income to borrow money, to prove that they have the right to live permanently in the UK if they are a citizen of the European Economic Area (EEA) or Switzerland.This applies to foreign citizens taking out a joint mortgage with a UK citizen.
The rules exclude borrowers from the Republic of Ireland, but not the rest of the EEA, which includes EU countries and Iceland, Liechtenstein and Norway. The requirement will also apply for buy-to-let applicants who are required to prove they earn at least £25,000 a year.
A spokesperson for Santander said:
“Our recent changes will ensure that we are meeting our legal and regulatory obligations as a mortgage lender.
“To continue helping as many customers as we can, EU citizens who are resident in the UK before January 1, 2021 will be treated as having permanent rights to remain in the UK for the purposes of our mortgage assessment.”