Help paid in dollars - Which lenders can offer me a mortgage?

j9falco

Hi I am paid in dollars this is because I work in the middle east and the currency with most companies there is dollars unfortunately.

I have an existing mortgage with the failed GMAC :mad: but my fixed rate is up shortly , On this mortgage I was able to self certify, but now in this climate that door seems to be closed with a lot of lenders

My question really is which lenders can offer a mortgage to someone in my circumstances?, perhaps there are other oil workers or people paid in dollars that can offer advice???

luckyfool

j9falco wrote: »

Hi I am paid in dollars this is because I work in the middle east and the currency with most companies there is dollars unfortunately.

I have an existing mortgage with the failed GMAC :mad: but my fixed rate is up shortly , On this mortgage I was able to self certify, but now in this climate that door seems to be closed with a lot of lenders

My question really is which lenders can offer a mortgage to someone in my circumstances?, perhaps there are other oil workers or people paid in dollars that can offer advice???

Your main issue may well not be the currency (i.e. C&G will lend based on earnings in a foreign currency), the main issue is going to be whether you are a UK Taxpayer. Do you pay UK tax on your income?

Is the property for owner occupation, i.e. do you and/or your family live there, or is it rented out or empty?

j9falco

C&G were only prepared to offer me 75% LTV which didn't even cover the redemption figure from GMAC, My house like most has fallen by 25% in the current climate so after the valuation by them I had to drop the application.

C&G were my first choice because I bank with lloyds so back to the drawing board unfortunately, they had stated they aren't lending more than 75% LTV in the current climate.

On the tax, I don't pay UK tax due to me only being in the country for more than 90 days less my travel days now (thanks gordon)

My wife resides in the property normally she is permanently employed in the UK so it would be a joint application with her.

I don't recall there was any great difficulty with GMAC the first time round, Wage slips and bank statements were all that were required, but again this may be more strict with the climate, perhaps you can better advice?

It may be that I have to remain with GMAC and go on to their variable after my fixed rate is up in June?

luckyfool

What is your reversionary tracker margin above base rate?

What does your wife earn and how much is the mortgage? Roughly how much is the property worth?

C&G do lend to 90% at the moment, however anecdotally their credit score is incredibly tough at the higher ltvs, i.e. declining 9 out of 10 applications at 90% ltv.

j9falco

Forgive me but I was lost with the first comment "revisionary tracker margin" could you elaborate slightly?

Wife earns 18,000 approx, property was valued by C&G at £155,000 redemption figure quoted is £118,000 as of June this year when the fixed rate ends.

We put up £54,000 as a deposit and paid £180,000 for the property brand new 2 years ago and summarily made £15,000 worth of improvements internally and externally.

My credit rating last time I checked was 960/1000, C&G had stated that they were only lending 80% plus LTV's to customers with an impeccable credit rating which I imagine is 1000/1000???

luckyfool

j9falco wrote: »

Forgive me but I was lost with the first comment "revisionary tracker margin" could you elaborate slightly?

Wife earns 18,000 approx, property was valued by C&G at £155,000 redemption figure quoted is £118,000 as of June this year when the fixed rate ends.

We put up £54,000 as a deposit and paid £180,000 for the property brand new 2 years ago and summarily made £15,000 worth of improvements internally and externally.

My credit rating last time I checked was 960/1000, C&G had stated that they were only lending 80% plus LTV's to customers with an impeccable credit rating which I imagine is 1000/1000???

The reversionary rate is the rate your mortgage reverts to after the main deal period. It might be an SVR, or often with Gmac it would be a reversionary tracker margin above Bank of England Base Rate. You should be able to find out details in your original offer letter, and if not can check with your lender directly. e.g. If your mortgage reverts to 2.7% above base rate then your rate based on current base of 0.5% would be 3.2%. Of course if it is an SVR then the rate could still be 6 or 7%+. This is complicated by the fact that most Gmac mortgages were sold on, so if it is an SVR then it could be an SVR belonging to the lender that bought your particular mortgage.

Lenders in the UK tend to use their own credit scoring system based on the data from the credit reference agencies, along with other details (e.g. married/single, number of children, etc.). Also their score will be based on yourself and your wife jointly. In effect though they are telling the truth, they technically offer 90% lending (so they can at least look like they have a comprehensive range) but in effect they don't want to be lending above 80%.

Your ltv based on the C&G valuation would be under 77%, there are some lenders still offering reasonable deals under 80% . . . the issue will be whether you can get any that will use your income. Your wife's salary is not enough on its own to support the mortgage so if that is not possible then you will as you say be effectively stuck on the GMAC SVR/reversionary rate.

j9falco

well thanks for the advice and info luckyfool I appreciate it.

I would also appreciate any other peoples views on my situation and perhaps what my options could be perhaps?

herbiesjp

You have already been given a lot of useful information above.

These used to be pretty straightforward, however in the current climate, you have seen for yourself that lenders have become more strict with criteria i.e lower LTV tiers made available to you.

Strangely enough I did a case for someone who worked in the oilfields in Libya etc, and we managed to get them a mortgage up in Scotland. Again similar situation wife earning, but not enough to get the mortgage in her own name, and so we needed to look other lenders to take into account the income of the husband

After a lot, and I do mean a lot, of conversation with many lenders we eventually got the deal agreed.

However this option would not be available to you, as they too have lowered their LTVs

You may have some limited options available, but it will really depend on your situation, as these cases are agreed on their merits now as opposed to be fairly straightforward previously

TEDDYRUKSPIN

Everyone will touch you as long as you have your tax receipts! None? . Only way will be self-cert.