Natwest and the Royal Bank of Scotland will no longer offer mortgages to ex-pats from 19 May, after reviewing demand, complexity and cost.
The decision includes applications from existing overseas customers wanting to request additional borrowing or a facility increase.
A statement from the banks explained they regularly look at the demand for products and balance this with the costs and complexity of providing them safely to customers, adding that “in this context we have come to the decision to stop offering new lending to ex-pat customers”.
From 19 May onwards, applicants must be resident in the UK to be eligible for a mortgage with Natwest and RBS.
A two-week transition period has been put in place to enable brokers to submit their applications.
Applications will still be considered from serving members of HM armed forces – Royal Navy, Royal Marines, British Army and Royal Air Force – and UK diplomats or UK consular staff, following standard residential mortgage criteria.
The statement noted this change does not affect the banks’ approach to foreign currency mortgages, where an applicant might reside in the UK but be paid in a non-Sterling denominated currency. As long as they are resident in the UK they are eligible to apply for a mortgage with Natwest and RBS.