Complicated Mortgage

SeaCaptain

I have a very complicated background for a mortgage, and have absolutely no idea where to start.

I am a seafarer working for an overseas company, and make a self assessment on an annual basis to claim the 'Seafarer Foreign Earnings' deduction, which leaves me completely tax free. I am a UK resident, and a tax payer legally.

I earn roughly £34000 a year basic, plus £19000 guaranteed bonus. I most years get an additional £20000 bonus depending on the work, but this is never sure and some years can be zero. The money is paid in a foreign currency into an offshore account, and I transfer the majority to the UK in pounds, but keep some offshore for day to day spending when travelling (all is declared though). The basic salary is protected against exchange rate fluctuations, so will always be roughly the same in pounds.
The salary slips are provided in Arabic, but I can get letters in English. I have every single bank statement and financial receipt, down to my supermarket shopping for the last 10 years.

I have £60,000 in savings and ISA for the deposit, and have no liabilities. My credit rating is good, with two late payments from several years ago, whereby a mistake in transfers lead to an unauthorised overdraft with HSBC and my mobile phone bill DD failing. I have no credit cards, no overdrafts, no loans.

I would like a mortgage for the maximum reasonable amount, and would like the flexibility to pay in extra money whenever I got additional bonuses. I also would like to be with a mortgage provider who might allow me to get consent to let for short periods in the future should I find myself working away for long stints.

Will anyone touch me? I just don't even know where to start, because I fear that the high street banks and building societies will just not know what to do either.

Help, advise, anyone please.

holly_hobby

The fact that you aren't liable for UK taxes won't be a negative, given that your income is proveable (if the source is accepted by the lender).

You won't in my experience, be classed as an ex-pat, as you are not employed within europe by a UK or UK based company, and don't receive your renumeration direct to a UK bank account.

There could be issues re your overseas employment and prolonged unoccupany ie your home will be unoccupied for more that 30 days on any one occassionin (if thats how your schedule works).

Do you have a permanent residence here currently ?
Do you return to it at the end of each duty period - or do you remain on location during your rest periods ?

CTL - is for acciential landlords - I don't think you're wanting to dip in and out of the rental market would suit.

The issue you will also have re you wanting to let for short periods, is that the min contractual term under an AST is 6 mths (unless both parties agree to notice) - this again may not sit.

Perhaps having a lodger (under gov rent a room scheme upto £4250 is tax free) - this would secure the property for periods whilst you are aware on duty. Having a lodger (whilst you are still resident in the dwelling) AFAIK does not require lender permission.

So the main issues are ....

You are paid in foreign currency (albeit some of it it is later converted to GBP) - so it is essentially subject to currency fluctuation
AND
Your salary is paid directly into a off shore account

The company is not UK based (and you are not armed forces), and you have no date of repatriation

I assume you transport cargo around the persian/gulf, so I assume you don't have a home or return to the UK at least every 30 days (affecting resi blds ins which is mandatory requirement of the mge) ?

As you can see from the above issues an UW will have, this is far too complex an enquiry for any estate agent or bank adviser (apologies to those whom may be reading who do have some experience of such enqs), so you need to speak to an experienced whole of market broker, whom has direct experience in placing enquiries for overseas workers paid in non-sterling currency - there will be a placement fee (and possibly an initial advice fee given the complexity of the enquiry and leg work that will be reqd by the broker).

I think if you can get your LTV below 75% (as the loan can be made under mandate), you may find a taker after a big of digging and verification - but it won't be an easy one and you may find only 1 or 2 providers whom are prepared to even consider it past the initial enq stage.

I don't however see the point in you purchasing given the issues, unless you want to set up a perm base here ? If so, why not continue adding to your 60k saving pot and pch for cash when you return.

Hope this helps

Holly

ACG

This is complicated, but i dont think its impossible to do.

But as holly says its probably not one for a bank.

It sounds like you have already but i would get all of your paperwork including any work contracts you have, bank statements etc etc and get them round to a good broker who is prepared to do the work to get this placed. Estate agents for instance wont have the time or knowledge i would'nt have thought (thats not to say they cant do it, they just probably wont want to).

hamster2013

i think the biggest complicating factor is that you are not a uk citizen
so you are not buying your permenant residence therefore can not claim the rates that are applicable for those purchases
what you are buying is a holiday home - and that is what would be your case

you would have to look into that.... unless you are relocating to the uk, in which case you would become a straight forward case where I would recommend just walking into an hsbc branch and getting a quote
they offer competitive rates and if you keep your LTV low - you should be able to secure a good rate and mortgage pretty easily

holly_hobby

Of course as you say H, if the OP returns to the UK, there will be plenty of takers with a low ltv, subject to status (ie he'll need an income and resi history !) .... but thats not the enquiry we're dealing with.

His pch will not be stictly classed as a holiday home for UW - but as I say (notwithstanding the employment issues) his unoccupancy and the duration of it will affect blds ins, which will affect the mge t&cs itself (unless specialist vacant property ins is sought and accepted by the lender, with a maintenance company emp for emergencies).

One for a broker.

H x

Let_Us_See

SeaCaptain wrote: »

I am a seafarer working for an overseas company, and make a self assessment on an annual basis to claim the 'Seafarer Foreign Earnings' deduction, which leaves me completely tax free. I am a UK resident, and a tax payer legally.

Lot of "ifs and buts" proposed, but in all honesty this should be a straightforward application as most High Street lenders will recognise and acknowledge your "seaman" classification. No magic solution required, just go and talk to a broker and let them make a few phone calls.

SeaCaptain

Thank you so much for the really helpful replies. I'm definately a resident, and not an expat, unless the ship is classified as another abode (I hope not).

I have to admit that as a seafarer I've had challenges in the past with car insurance, where a renewal was refused because I spent too much time out of the country. As far as the government is concerned, because I'm a seafarer, I am ordinarily resident and a taxpayer in the UK (albiet with Seafarer Earnings Deduction).

I'm not too worried about the consent to let, thats not really an issue, the main focus is that I'd like a place to call home when I'm not sailing.

I'm not sure if its within the forum rules, but would anyone be able to suggest a good broker that might be able to navigate around these issues and help me?

Let_Us_See

PM (private message) me and I can point you in the right direction.

RubiaLoca

Hello Sea Captain

I'm in virtually the same situation as you and would be interested to learn whether you managed to obtain a mortgage with a high street bank. I'm getting a lot of conflicting information!

Thank you for your help!