As Bitcoin prices rise, so do investor profits, and if a report from the UK’s The Sunnewspaper is to be believed, it appears as though investors could potentially have trouble when it comes to securing a mortgage with their Bitcoin money. Some banks in the UK appear to be showing a reluctance to deal with Bitcoin profits, especially when it comes to providing audit trails. Another complicating factor appears to be a lack of understanding of cryptocurrency in the mortgage industry in general.
Broker Mark Stallard, of House and Holiday Home Mortgages, recounted:
The first mortgage lender I rang asked me what a cryptocurrency was. I rang two other lenders and they said they would not touch it. 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.
Acceptance May Depend On The Banking Institution
Several building societies said they would not accept deposits derived from cryptocurrency, while banks including Santander, Nationwide, and Aldermore said they had no formal policies in place. Nationwide previously made headlines in the cryptocurrency space when it was announced that Coinbase would no longer be accepting deposits from the bank.
The Building Societies Association stated:
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.