Australian Corporation Compliance Act 2001

Posted on 1 June 2010 by steve


We have a property in the UK worth £200k mortgage free and rented out for £400 a week.

We are looking to buy to let, but NatWest didn't want to know due to us living in Australia and working in Papua New Guinea.  Who can we go to for a mortgage?

Steve

It is a few years since I came across this strange bit of legislation, but it was Royal Bank of Scotland who bought to my attention. As you will be aware NatWest are part of the RBS Group.

'With effect from 26th March 2004, the Australian Corporation Compliance Act 2001 prohibits foreign financial Institutions, i.e. those located outside of Australia and it's territories, to open new accounts or other financial products for Australian residents. The RBSG are therefore restricted from making available any new financial products whilst a new or existing customer is resident in Australia and it's territories'.

It is my understanding that all lenders based outside of Australia are prohibited from granting you a mortgage whilst you are resident in Australia. For this reason I recommend that you speak to an independent Australian Mortgage Broker with specialist knowledge of arranging overseas mortgages.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.