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[personal profile] andrewducker

Date: 2012-02-29 02:59 pm (UTC)
From: [identity profile] danieldwilliam.livejournal.com
Except that the lending banks have probably borrowed in Sterling.

Somewhere in here somebody has a currency exposure.

Date: 2012-02-29 04:10 pm (UTC)
From: [identity profile] a-pawson.livejournal.com
True but very few mortgages run the full term nowadays. It is very easy to change mortgage providers, and many people do every few years.

And we're not talking about setting up a currency overnight. It will take at least 5 years from any referendum to actual independence, and probably a good few more years to setup a new currency so there will be plenty of time for banks and individuals to sort themselves out.

Date: 2012-02-29 04:30 pm (UTC)
From: [identity profile] danieldwilliam.livejournal.com
This is true - plenty of time for everyone to adjust and I think you're right, most will.

I wonder aloud tho - if I were selling a house, with a mortgage in sterling if I'd want to be paid in sterling and not take a currency risk on the transaction. Maybe.

Date: 2012-02-29 04:37 pm (UTC)
From: [identity profile] a-pawson.livejournal.com
Absolutely, there will be some currency risk which someone will have to bear. It will almost certainly fall onto the borrower - the banks are not daft enough to let it fall the other way around.

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