Mortgages and pensions
In the mortgages market, UK Finance says it does not expect any issues for UK residents with property in Europe purchased with a loan from a UK-based bank.
For UK-residents with a mortgage from an EEA-based lender on an EEA-based property, the ability to continue servicing that mortgage will depend on the position taken by the lender.
David Hollingworth, associate director at London and Country, says he does not expect to see any move to make changes to existing portfolios in a market that is already highly regulated.
Following the Brexit vote, there was a major concern over pension payments to customers outside of the UK and vice versa.
The Association of British Insurers says it has done “everything possible” to prepare for no deal, including transferring an estimated 29m insurance contracts and the establishment of nearly 40 EU subsidiaries and branches to minimise disruption to customers.
Longer-term, the UK’s position with Europe may be one of seeking ongoing equivalence with EU regulation to minimise barriers to trade with the EU bloc or towards deregulation in order to increase the UK’s competitiveness worldwide.
The chosen path will depend both on the terms of Brexit and also the political landscape within the UK in the years following Brexit.
Ima Jackson-Obot is deputy features editor of Financial Adviser and FTAdviser.com
