Useful information on Progressive’s Foreign Currency Loan

19 August 2019

Progressive Building Society is now offering Foreign Currency Loans, available in both Euro (€) and US Dollars ($)

Further product information:

  • A mortgage will be classified as FCL if the customer uses foreign currency income or a foreign currency asset to repay the mortgage; 
  • The Society’s loan will remain in Sterling (£);
  • The accepted foreign currencies are only either Euro or US Dollar;
  • The Society will only accept 1 of the 2 foreign currencies per application. Therefore, we can accept an application in Sterling and Euro or Sterling and US Dollar but not both Euro and US Dollar;
  • The Society can only accept either income in a foreign currency or an asset in a foreign currency, but not both, i.e. the customer can make the mortgage payments using a foreign currency income or repay an interest only balance using a foreign currency asset, but they cannot do both;
  • Once classified as an FCL the mortgage will remain classified as a FCL for the duration of the mortgage;
  • The Society will monitor and track the exchange rate on each FCL mortgage daily;
  • The Society must alert FCL customers if the exchange rate moves against them by 20% or more.  We will continue to contact customers for as long as the position of the exchange rate remains at more than a 20% reduction in the exchange rate.  During this time, the Society will issue a letter to the customer every 90 days;
  • The exchange rate applicable to the mortgage (i.e. the rate that future exchange rate movements will be measured against) is the Reuters exchange rate applicable on the day funds are released (the completion date). For Self-build cases, this will be the rate on the day funds are released for the 1st stage;
  • As our Affordability Calculator is in sterling, please convert the foreign currency from either Euro or US Dollars to the sterling equivalent at the appropriate exchange rate on the day of the calculation.  Our Affordability Calculator is designed for guidance purposes only.
  • For Foreign Currency Loan product details, please see our latest mortgage package within the Literature section.