Scotland independence warning for homeowners: New currency could hurt mortgage payments – The Express

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THE SNP’S hopes of Scottish independence have been dealt a major blow after an expert warned Scots may not be able to afford their monthly mortgage payments should the country be successful in splitting from the UK.

Scotland’s First Minister Nicola Sturgeon has vowed to press ahead with a second referendum on Scottish independence should the ruling SNP win a majority in the upcoming Scottish election on May 6. But the SNP’s push for a break from the rest of the UK has come under furious attack, with experts warning Scotland could be plunged into a financial black hole in light of the huge budget deficit the country was running – even before the coronavirus pandemic. Now John Ferry, a contributing editor for the pro-Union think tank Three Islands, has warned Scottish people could struggle to pay their monthly mortgage on the properties if the SNP is successful in its quest for independence.

But Mr Ferry has warned mortgage contracts require payments in Sterling, which would immediately trigger a “foreign exchange risk to manage as the value of incomes fluctuate relative to mortgage liabilities”.

He added a “free-floating new currency” would most likely devalue relative to the pound that could leave “households unable to afford their monthly mortgage payments”.

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