Brits living in EU told their UK bank accounts will be closed without Brexit trade deal

Lloyds, Halifax, Barclays and Bank of Scotland have informed customers that they will lose their accounts when the Brexit transition period ends on 31 December - and more banks are expected to follow suit

Unless a trade deal is agreed with the EU, UK financial institutions say they may have to shut down thousands of accounts Thousands of Brits have been told they will lose their UK bank accounts if the government fails to agree on a post-Brexit trade deal.

British citizens who are currently living in Europe will see their accounts shut down when the Brexit transition period ends on December 31.

Lloyds bank, which includes Halifax and Bank of Scotland, says it has already written to 13,000 customers based in the Netherlands, Slovakia, Germany, Ireland and Portugal over the changes.

Coutts has done the same, urging customers to make alternative arrangements, with more banks expected to follow suit.

A Lloyds spokesperson said: "We have written to a small number of customers living in affected EU countries to let them know that due to the UK's exit from the EU, regrettably we will no longer be able to provide them with some UK-based banking services.

"We want to keep customers informed and offer advice on next steps." Lloyds says it's already written to thousands of customers asking them to make alternative arrangements. Under current rules, banks in the UK can trade across Europe because the countries are bound by the same regulatory framework.

However, "passporting" expires at the end of the year and, while the UK has legislated so that EU banks can continue to provide services for customers in Britain, the EU has not done the same.

Unless a trade deal is agreed with the EU, UK financial institutions say they may have to shut down thousands of accounts.

Customers who bank with firms that own EU-based subsidiaries are having their accounts transferred, but banks that do not have an EU arm would have to apply for a licence to trade in each EEA country.

Barclays has also notified customers across the EEA that their accounts will be closed.

A Barclays spokesperson said: "In light of the UK leaving the EU at the end of 2020 we continue to review the services we offer to customers within the EEA, and any impacted customers will be contacted directly."

Spanish lender Santander said it is keeping the situation under review. Natwest said it has no plans to close any accounts.

HSBC, which has a large number of customers in France, Germany and Switzerland, said that as an international bank it could continue to serve UK customers across the EU, but no guidelines have been confirmed.

Reference: By Emma Munbodh Deputy Money Editor: 15:56, 22 SEP 2020