Brexit  

Lenders deny discriminating against EU nationals

Mortgage brokers Martin Stewart, director of London Money; Oliver Marley, mortgage adviser and head of research at London-based Independent James; and Ray Boulger, senior technical manager at London-based John Charcol, said they had not encountered any problems securing mortgages for EU nationals.

Mr Boulger said: “I am not aware of any situations where we have had a problem along those lines. 

“To prove affordability, [lenders] want borrowers to have a permanent right to reside in the UK.

“As EU nationals have a permanent right to reside in the UK, and the expectation after Brexit is EU nationals here are going to have that right, I don’t see lenders changing their policies on EU nationals due to Brexit.”

Mr Boulger pointed out that problems can sometimes arise when processing mortgages for EU nationals, as lenders have to do credit checks, and the systems used to carry out those checks vary from country to country.

As a result, lenders can have difficulty accessing EU nationals’ credit data – but this is a problem that existed long before the EU referendum.

A spokesperson for UK Finance said: “We do not have any evidence to suggest that firms are changing mortgage criteria, based on residency.

"Lending decisions are determined by a range of factors, mainly to do with affordability, creditworthiness and the suitability and valuation of the property, which may have nothing to do with residency status.

“Lenders are keen to pursue a ‘business as usual’ agenda throughout the forthcoming period of Brexit negotiations. The ongoing objective is to treat customers fairly, both now and in the future.”

simon.allin@ft.com