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Which lenders offer foreign income mortgages? Currently US Dollar and Euro are two of the most popular currencies
Getting a mortgage to buy a property in the UK when you are paid in US dollars, Euros, or another currency, can be a bit more complex, but it is certainly possible.
Private banks often provide £500,000+ mortgages to those paid in international currencies, while other banks and building socieites are actively targeting borrowers paid in a wide range of funds. Surprisingly, many smaller lenders also offer foreign-income mortgages as noted in the table below.
Aaron Strutt, product director at Trinity Financial, says: "Many of the people we arrange foreign income mortgages for tend to be moving back to the UK, often with the company they work for. We also deal with people working overseas and buying a home which their family will live in while they are working abroad. British expats also like to buy properties at home especially if they are higher earners."
Here are some steps to consider when securing a foreign-income mortgage:
1. Research Lenders: Trinity Financial's brokers work with international lenders, banks and building societies experienced in providing mortgages to buyers paid in foreign incomes.
2. Credit History: Many lenders prefer borrowers to have a link to the UK, especially for American clients. A good credit score will improve your chances of approval, but it is not essential.
3. Deposit: Lenders may require a larger deposit for international buyers, often up to 30% or more. This can vary depending on the lender, your creditworthiness, and the specific property.
4. Currency Exchange: Consider the currency exchange rate and its impact on your mortgage payments. It's essential to understand how fluctuations in exchange rates can affect your ability to make payments.
5. Income Verification: You will need to provide proof of your income, which may include payslips, accounts, and references from your current employer. Lenders may want to see a stable and reliable source of income.
6. Documents: Prepare all necessary documentation, including proof of identity, proof of funds, and any other documents required by the lender. Trinity Financial's brokers can provide a list of the information the lenders need.
7. Visit London or the UK: If possible, visit the area you want to buy and view properties before applying for a mortgage. This can help you make an informed decision and show your commitment to purchasing. Trinity Financial's brokers work with clients to secure mortgages over the phone or through Zoom.
Which lenders accept foreign incomes? And what are their policies?
|
Mortgage lender |
Acceptable currencies |
Other information |
|
Marsden Building Society for Intermediaries
|
US Dollar and Euro
Oman Rial, Norwegian Krone, Swiss Franc, Chinese Yuan Renminbi, Emirati Dirham, Saudi Arabian Riyal, Hong Kong Dollar, Kuwaiti Dinar, Singapore Dollar, Qatari Riyal, and Japanese Yen. |
A 10% haircut will apply.
A 15% haircut will apply. |
|
Bank of China |
US Dollar, Euro, CNY, HK Dollar, SGD, MYR, TWD and AED. |
|
|
Suffolk BS for Intermediaries |
Euro, US Dollar, Canadian Dollar, Singapore Dollar, Hong Kong Dollar, Swiss Franc, Norwegian Krone, UAE Dirham, Kuwaiti Dinar or Qatari Riyal. |
For foreign currency income, the society will convert to Sterling and then take a 20% haircut for affordability to allow for exchange rate fluctuations. |
|
HSBC for Intermediaries |
HSBC’s accepting Euro and US Dollar. Also, currencies are accepted from the following countries: Australia, Guernsey, Hong Kong, Singapore, Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain. |
Customers must be aware of the risks of potential exchange rate fluctuations. An illustration of the potential impact of 20% will be provided with the bank's personalised illustration. |
|
NatWest for Intermediaries |
The currencies we accept: Great British Pound, Euro, Australian Dollar, Bulgarian Lev, Canadian Dollar, Croatian Kuna, Czech Koruna, Danish Krone, Hungarian Forint, Japanese Yen, New Zealand Dollar, Norwegian Krone, Polish Zloty, Romanian Leu, Singapore Dollar, Swedish Krona, Swiss Franc and United States Dollar. |
Lenders have to monitor the customer’s foreign exchange exposure and notify them when it deviates adversely by 20% or more from the exchange rate at the point that the mortgage was completed. |
|
Santander for Intermediaries |
US Dollar, Euro and Swiss Franc. |
UK residents with the security in the UK will only accept an applicant’s. Income is paid in foreign currency if they are employed. A contractor is classed as self-employed. |
A haircut is a percentage reduction to reduce the risk of currency fluctuations.
Call Trinity Financial on 020 7016 0790 to secure a foreign income mortgage or book a consultation.
The information contained within was correct at the time of publication but is subject to change.
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