Mortgage lenders stop accepting foreign income

by Aaron Strutt

Sep 25 2015

High street mortgage lenders have stopped accepting foreign income as part of a mortgage application in preparation for new EU regulations due early next year.

Over the last two weeks, Halifax, Scottish Widows, BM Solutions, Clydesdale Bank, Bank of Ireland, Accord Mortgages and the Skipton Building Society have all stop accepting foreign income for mortgage affordability purposes. 

Nationwide Building Society was one of the first lenders to pull out in April earlier this year.

Aaron Strutt, product manager at Trinity Financial, says: “The lenders are changing their policies because of the European Mortgage Credit Directive and its introduction on 21 March 2016. Thankfully there are a few banks and building societies left in this market, but they seem to be disappearing quite quickly.

“The credit directive has two key aims, to provide a high level of consumer protection and create greater cross-border competition for mortgages across the European Union. Unfortunately, the new rules create a significant amount of work for the lenders and they don’t seem to think it is worth the hassle staying in this part of the market.”

With so many lenders pulling out of the foreign income mortgage market, it is going to be harder to get a mortgage if you're paid in foreign currency. For the moment, Trinity still has access to a host of high street banks and building societies happy to consider income earned overseas.

For help to secure a mortgage, call Trinity on 020 7016 0790.