Foreign Currency Mortgages In The UK

Foreign Currency Mortgages In The UK

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Ross McMillan

Blue Fish Mortgage Solutions

As a former estate agent of almost 15 years, I now use my vast experience, insider knowledge and access to dozens of lenders to help people like you:

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Can I Secure a Mortgage in the UK with Foreign Currency Income?

Securing a mortgage in the UK when your primary income is in foreign currency can pose challenges. Most UK lenders prefer income earned in the UK and paid in pounds sterling. However, there are alternative mortgage providers willing to consider your situation.

Whether you’re a Seafarer, Oil Rig Worker, Engineer, Pilot, or employed in another occupation, if you’re a UK resident receiving income in foreign currency, I may be able to assist.Thankfully there are mortgage lenders who will look at things differently and I know who they are and how they work.

Which Foreign Currencies Will Be Potentially Accepted As An Income For a UK Mortgage?

When applying for a UK mortgage with foreign currency income, lenders typically consider a range of currencies. While specific acceptance may vary between lenders, common currencies often accepted include but are not limited to:

Ultimately, the acceptability of a particular currency depends on various factors including the lender’s policies, the stability of the currency, and the ease of conversion into pounds sterling. It’s vital to discuss your specific income situation with an experienced mortgage advisor in this area to determine eligibility and bespoke requirements. 

Which Foreign Currencies Will Not Be Accepted As An Income For a UK Mortgage?

While there isn’t an exhaustive list of unacceptable currencies for UK mortgage purposes since it can vary among lenders and is subject to change based on economic conditions and lender policies, some currencies that might face challenges include:

  1. Highly volatile or unstable currencies.
  2. Currencies from countries with significant political or economic risk.
  3. Currencies subject to strict foreign exchange controls.
  4. Currencies from countries with limited convertibility.
  5. Currencies from nations facing international sanctions or embargoes. 

As an example, typically, income received in the local currencies of Angola, Argentina, Colombia, Cuba, Iran, Iraq, Nigeria, Pakistan, Russia, Rwanda, Syria, Turkey, Ukraine & Zimbabwe would not be deemed acceptable in this context. 

It’s crucial to consult with an experienced specialist mortgage broker to understand specific lender policies and options regarding acceptable foreign currencies for any UK mortgage applications. 

Foreign Currency Mortgages In The UK

What Level Of Deposit Is Required for a UK Mortgage with Foreign Currency Income?

The deposit required for a mortgage in the UK when paid in foreign currency typically aligns with standard UK resident criteria, and may therefore be a minimum requirement of just a five percent deposit. The currency of your income does not usually affect the deposit level required by lenders.

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?

Possibly….

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. 

Foreign Currency Mortgages In The UK

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.

How Does Working Abroad On A Rotational Basis Impact Mortgage Approval Chances?

If you work abroad for extended periods but return home during breaks, it’s still possible to obtain a UK mortgage and lenders may consider your application, as long as you maintain UK residency throughout the year. Similarly, if you work abroad during the week and return home on weekends, it’s unlikely to adversely affect your chances of mortgage approval. However, the sustainability  and viability of any arrangements and associated affordability of any costs and expenses could impact your options.

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.

Foreign Currency Mortgages In The UK

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To understand more on this topic click here

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.

Foreign Currency Mortgages In The UK

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