Independence may hurt Scottish housing market

[LONDON] A vote in favour of Scottish independence on Friday threatens to weigh down a booming housing market should thousands of homeowners become debtors of foreign lenders.

Political leaders in the UK are sparring over whether an independent Scotland would keep the pound, with the outcome having major consequences for the economy and housing. If Scottish homeowners eventually have to repay pound-denominated loans in a foreign currency, they would face the risk of higher costs and possible default.

Prime Minister David Cameron warned on Sept 14 that the break-up would be akin to a "painful divorce", and said that the UK will not share its currency with an independent Scotland. Independence leaders dismiss the government's threat, insisting that Scotland and the rest of the UK would form a currency union to benefit both nations.