Foreign Currency Mortgages In The UK
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If you only have overseas income, you may well have trouble finding a UK mortgage. This is because the majority of lenders in the UK will only consider income both earned in the UK and paid in pounds sterling. Thankfully there are mortgage lenders who will look at things differently and I know who they are and how they work.
Perhaps you are a Seafarer, Oil Rig Worker, Engineer, Pilot or IT Consultant.
Or maybe do something else that we just haven’t heard of yet…but whatever you do, you are a UK resident but paid in a foreign currency……and you’re now looking to be approved for a mortgage or re-mortgage for a property in the UK and your situation something is like this:
- You work away for a number of weeks at a time but return to the UK when you are not working.
- Or you work away during the normal working week and return to the UK at weekends.
- You have at least a five percent deposit available.
- You are paid in Euros or US Dollars.
I can help and booking your initial discovery call is definitely worth your while but in the meantime you may also have some questions like the ones below.
Does the country in which you pay tax impact foreign currency income mortgages?
Most lenders considering overseas income will require UK tax to be paid.
If income is earned tax-free in a certain country and is brought back into the UK, then self-assessment may be required to evidence the income earned and tax paid accordingly…but this is not always the case.
If no tax is paid at all, then most UK lenders will require an acceptable and viable explanation after which certain lenders may be willing to consider things.
Will the location of my work/job impact on the chances of success of any mortgage application?
If you are employed in a European country such as France, Germany or Spain or with a firm based in somewhere such as the USA, this is more likely to be approved than it may be if you work in a country further away geographically, particularly if the country in question is considered a risk or under any form of political or fiscal sanctions.
There is not typically a hard and fast rule around this but rather that any assessment will be based on the overall “picture” and whether the situation could be considered as feasible or not.
Speak to an expert!
Contact me, Ross McMillan, the owner of Blue Fish Mortgage Solutions today for expert advice and guidance on your unique mortgage and property needs. I will work with you one-on-one to help you find the right solution for your specific needs. With my expertise and industry connections, you can rest assured that you are in good hands when it comes to securing the financing you need for your property.
Will my employment status be an issue?
The short answer is “Yes.”
Those who are classified as employed workers earning income paid in overseas currency, will undoubtedly have more lenders available than to those who are self-employed.
In fact, if self-employed your options will likely be limited to very specialist lenders if available at all. This is due to the difficulty in being able to verify actual earned disposable income from self-employment due to different tax systems in different countries.
As a result, if self-employed income is earned overseas then lenders will almost always require the company to be domiciled in the UK, with full accounts drawn and tax paid on income as if it were from the UK.
Please note: HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Will bad credit affect my application?
If there’s previous bad credit showing on your credit file, then as with most forms of borrowing this can definitely limit the options available to you.
Potential credit issues you may be faced with are a low or impaired credit score, defaults, County Court Judgements (CCJs), Individual Voluntary Arrangements (IVAs), and Debt Management Plans (DMPs).
I help people with these kind of issues every day but in general the smaller the amounts involved, the less severe and older the issue, and the larger the deposit, the more chance there is of approval.
Worst case, if it’s not feasible to apply for a mortgage right now, I can and will still work with you and advise what things need to be done to improve your chances in the future.
What are the key stages of the property buying process in Scotland:
- Speak to mortgage advisor to establish and get advice on what a realistic budget for your individual circumstance might be.
- Mortgage advisor may then progress to obtain an agreement/decision in principle to give you some confidence – not a guarantee – that you could obtain a mortgage. (aka an AIP/DIP)
- Start viewings and then identify property you would like to offer on.
- Instruct solicitor to make offer. (once you’ve done sums and consulted with your mortgage advisor to double check/firm up on figures etc)
- Once offer accepted, we then look to progress the agreement in principle (AIP) to a full mortgage application.
- Legal conveyancing between both solicitors commences.
- Once mortgage offer received, solicitor could be in a position to confirm the legal bargain (aka conclude missives) which would include a definitive date of entry/settlement date.
- For the date of entry, the monies required from you (i.e. deposit) need to be in your solicitors bank account and cleared.
- Solicitor draws down/receives funds from mortgage lender to complete the purchase.
- On the date of entry get keys for your new house.
Hopefully the above information has been useful but if you have any other questions or are ready to start your own property journey now, please fill in the enquiry form and we will get in touch!
This article is intended to be a generic overview and each individual situation will need to be considered carefully, with the final decision being down to the lender.
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