Brexit statement

The UK and Brexit

The UK is no longer a member of the European Union. The UK and European Union have agreed a trade deal, which does not allow the previous agreements relating to financial services to continue as they were.

So we can continue to act within the laws and regulations that apply within the EU, we’ve made the difficult decisions to no longer accept deposits/credit transfers or payments from an EU account into a Principality account.

Since communicating to customers about these changes, we have made some additional alternations. If you have a mortgage with us and live in the EU, you will also no longer be able to request the following changes on your mortgage:

  • Switch to another rate;
  • Request further borrowing;
  • Add or remove customers to the mortgage;
  • Change the payment due date;
  • Extend or reduce the term; and
  • Change the repayment method.

We’re sorry if these changes will cause our customers any inconvenience. We will continue to monitor our position and if necessary, get in touch again.

We will also continue to update this web page with any developments, and how these may affect you.

Last updated 15th February 2021

More information...

For further information about how Brexit will affect you:

 

Is my money safe?

Yes, your money is protected by the Financial Services Compensation Scheme and this protection will still apply following Brexit. For further details, see: https://www.fscs.org.uk/.

Will there be any changes to my mortgage and/or saving account(s)?

Yes, if you live within the EU your savings account and/or mortgage account can continue. However, from 11pm on 31st December, we no longer allow the following.

If you have a savings account with us, we cannot:

  • accept deposits from an EU bank account,
  • accept credit transfers from an account held in the EU to your Principality savings account.

If you have a mortgage account with us, we cannot accept payments from an EU bank account. And you are no longer able to request the following changes on your mortgage:

  • Switch to another rate;
  • Request further borrowing;
  • Add or remove customers to the mortgage;
  • Change the payment due date;
  • Extend or reduce the term; and
  • Change the repayment method.

I am an EU citizen living in the UK, will there be any changes to my account?

Currently, we don’t anticipate making any changes to the way your account is serviced. However, our products are only available to individuals resident in the UK for tax purposes or Crown employees serving overseas and their spouses.

I live in the EU and have a savings account with you. Should I take any action?

Yes.

If you have a savings account with us, this can remain open and will still accrue interest. However, if you currently receive payments via an EU account in relation to your savings account, you need to:

  • Change these payments so that these are being received from a UK bank account. If these changes are not made, then any future payments will not be accepted. You should also look to update your correspondence address to a UK address. Once you change this, all servicing communications e.g. statements, will be sent there and you may need to act promptly in response to some of these

    Or;

  • Close your account without an interest penalty (if applicable, see the terms and conditions of your account). If you choose this option, you have until the 31st March 2021 to close without penalty and you will need to send us a bank statement showing your address and account information. Previously, we advised that your savings had to be sent to a UK account. However, we are now able to close your account by way of a single transaction to an EU bank account operating in your name.

If you don’t receive payments into your savings account via an EU account, you should still look to change your correspondence address to a UK address. Once you change this, all our servicing communications e.g. statements will be sent there and you may need to act promptly in response to some of these.

I live in the EU and have a mortgage account with you. Should I take any action?

Yes.

If you have a mortgage account with us this can remain open. However, if you currently send payments via an EU account to it or wish to make any changes to your mortgage account now or in the future, you need to:

  • Amend these payments so that these are received from a UK bank account. If this change hasn’t been made, then we haven’t accepted any payments into your account since 31st December 2020. You should look to update your correspondence address to a UK address. Once you make this change, all servicing communications such as statements will be sent there and you may need to act promptly in response to some of these. 

Or;

  • Close your account, and transfer your mortgage to another provider without penalty, if you feel the restrictions on the way your account will now operate are too difficult for you. If you choose this option, you have until 30th June 2021 to transfer penalty free to another mortgage.

If you aren’t sending payments via an EU account to your mortgage account, you should still look to change your correspondence address to a UK address. Once you make this change, all servicing communications, such as statements, will be sent there and you need to bear in mind that you may need to act promptly in response to some of these. 

 

 

Will you keep me informed of any changes?

Yes. We have written to all customers impacted by these changes and will continue to provide updated communications if we need to make any further alterations to our products or how we service them.

Any updates will also be posted on this web page.

Is Principality Building Society ready for Brexit?

Despite the uncertainty surrounding the terms of the trade deal between the UK and EU, we're confident that we can deal with any negative consequences that there may be for us and the UK economy. Our preparations have been driven by the need to continue to act in the best interests of our Members. We've considered a range of different scenarios and our strong financial performance means that we are well-placed to weather any sudden economic changes. However, we are not complacent and we will continue to monitor political and economic developments to ensure that we are doing all we can to prepare for any future developments.

  • 6th largest UK building society
  • A mutual building society, owned by and run for the benefit of our 500,000 members
  • Over 160 years experience
  • Taking care of over £11 billion of our customers' assets
  • Members can access a Member Rewards page featuring competitions, discounts and more.

We are covered by the FSCS

Find out more about what it means for you.

Principality. Where home matters.