The new mortgage prisoners?

With passport arrangements for financial services ending on 31 December 2020, many lenders have been left with no option but to cease lending to British nationals, leaving thousands effectively stranded.

EU expats appear to have felt the full effects of this, with many unable to even switch to a better deal with their current lender. They are therefore left with little but no option but to move to their lender’s standard variable rate, with big increases to their monthly mortgage repayments.

The situation is even more dire for EU expats with a limited leave to remain visa and looking to purchase a new property in the UK. But is it truly fair that they should have to pay the price for Brexit?

Ironically, we have found that many expats are choosing to move back to the UK because of Brexit. But, with the current lending restrictions in place, this is generally only possible for those expats living outside of the EU.

The devastating impact of the Coronavirus pandemic has certainly exacerbated the situation. With the need to focus on our own domestic issues, other matters have had to take a sidestep. Yet, in doing so, we have effectively created a new group of mortgage prisoners, shut out from their homeland, albeit temporarily, and forced to stay put.

As we have also been fortunate enough to enjoy a booming property market in the UK since the easing of the first national lockdown, our attention seems to have been deterred from these issues. But how much longer will our EU expats realistically need to wait until their needs are addressed?