Scottish homeowners have been warned that a “Yes” vote for independence on September 18th will mean that Scotland would possibly have to create a brand new currency. This would have dramatic consequences for their monthly mortgage repayments.
Although the terms and conditions would need to stay the same, regardless of the lender, the payments would need to be made in the new Scottish currency and would therefore be subject to Foreign exchange rates.
Based on the assumption that a new Scottish currency, if allowed to float freely on international money markets, would depreciate by around 10pc immediately against the pound, that could see the proportion of mortgage payments as a percentage of income in Scotland jump dramatically.
In the early days, it is expected that a new Scottish currency would certainly be weaker than sterling and longer-term interest rates in Scotland would have to be higher than in the UK.
Anyway, here’s the maths…… Experts say that a new currency is likely to fall in value by about 10% immediately against the pound. In that example, a Scottish homeowner with a £1,000 monthly mortgage payment would suddenly have to find an additional £100 overnight just to cover the short-term cost of buying sterling to make their payment.
Most mortgage lenders operating in Scotland are based in England, so UK rules apply. There are still a couple of small Scottish Independent Building Societies, but most have been swallowed up by Nationwide Building Society – again UK rules apply. It is unclear whether the UK banks would want to continue to lend in Scotland, or how they would be regulated. So far they are saying nothing on the subject.
Apparently Scottish homeowners would also be affected by any changes to the Bank of England increasing interest rates, which Governor Mark Carney told the UK Trade Unions today, is likely to happen next year. I can’t work out how this is the case, or if it’s a bit of Yes / No propaganda.
So, my advice to any mortgage holder eligible to vote? No idea!!
Recent posts
Homebuying reform to cut homebuying times by around four weeks, and save first-time buyers around £650, says the government.
Buying your first home is a huge milestone, but it can also be a complex process. There are several factors a first-time buyer should consider before making an offer on a property, including understanding the difference between leasehold and freehold and checking council tax bands.
We’ve detailed some questions you can ask your estate agent to help you make an informed decision.
Best UK Mortgage Rates this Week
3 days ago
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Signs it's time to remortgage
5 days ago
Remortgaging means switching to a new mortgage deal. This will either be with your current lender or a new one.
Getting advice and moving to a new deal when the time is right can mean lower monthly mortgage payments, better interest rates, or releasing equity from your property.
Here are some signs it may be time to remortgage.
According to Nationwide Building Society’s latest House Price Index, house prices dropped 0.6% month on month in May – the first monthly decline this year.
Most Affordable UK Spots for First-Time Buyers
19 May 2026
Research from Lloyds identifies the most affordable areas in the UK for first-time buyers to be able to get onto the property ladder.
On Wednesday, 13th May, King Charles delivered his speech at the House of Lords, outlining the government’s plans for the upcoming year.
Here is a summary of the housing and energy/environment points.
From 18th May 2026, Halifax (part of Lloyds Banking Group) is launching a ‘£5k Deposit mortgage’ to help first-time buyers get onto the property ladder sooner.
More information
Trusted by
