BEWARE Bitcoin: Banks may DECLINE your mortgage if you’ve raised cash from cryptocurrency

Wednesday, January 24, 2018
By Paul Martin

CAPITAL raised from bitcoin is being turned down by some mortgage lenders as cryptocurrency investors attempt to get on the housing ladder.

Wed, Jan 24, 2018

Some major banks are refusing to take profits gained from bitcoin even though they have been converted to sterling amid fears the capital will breach anti-money laundering regulations.

Mark Stallard, a broker and principal at House and Holiday Home Mortgages said one public sector worker had built up £40,000 after investing in bitcoin for a deposit.

But He was unable to secure a loan from a bank because the funds were raised from cryptocurrencies.

Mr Stallard said: “When I mentioned where the money had come from there was massive reluctance to help or understand the problem.

“I do not believe the mortgage providers in general are ready for this issue and research tells me that a lot more people will be knocking on our doors with funds made or raised in this fashion.”

At the moment cryptocurrencies are not regulated by central banks.

Some major banks including Santander, Nationwide and Aldermore have all said they will not accept a deposit derived from a cryptocurrency due to the fact the source of their money can’t be tracked.

The Building Societies Association said: “There is currently no regulation of these electronic currencies, which puts them into the highest risk category in relation to money laundering. In addition, it is well known that such currencies are popular with criminals, who use them to launder the proceeds of crime.”

However, it does not say in the UK mortgage regulation that using sterling proceeds from cryptocurrency transactions as a deposit is forbidden.

Coventry Building Society, Skipton and the Yorkshire Building Society have said they would accept deposits derived by bitcoin.

Bitcoin investor Max Wilde said: “Cryptocurrency has become the cash grab of our generation.

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