Will foreign income stop me getting a mortgage

Andy_St

I don't know if this will affect anyone else here but the EU will be bringing in a piece of legislation next year called the Mortgage Credit Directive.

Its dealing with people who take out a mortgage in a currency different to their earnings, it seems to be targeting people buying holiday homes abroad but will also have the consequence of making it very difficult for people living in the UK but not earning in Sterling to get a mortgage as mortgage lenders would have to offer a mortgage in the same currency as your earnings

As someone hoping to buy a house next year and having worked hard to save a 20% deposit this could make it almost impossible for me to have a mortgage.

Due to the nature of my job i'm paid in US Dollars but live in the UK

Any help or advise would be useful. I understand there are lots of Mortgage Brokers on here. How much of an issue will the MCD become?

More info, looking at houses around 250k so 50k deposit.

Will be joint mortgage with my wife combined salary (at current exchange rate) 88,500

Andy_St

Can anyone help?

TravelBugHappy

Do you pay uk incone tax & NI

Andy_St

Income tax no, NI voluntary

Let_Us_See

You need professional advice and I recommend you use a broker.

Andy_St

i fully intend to use a broker when the time comes to apply for mortgage.

I posted the thread firstly to see if people were aware of the issue and secondly to see if any of the brokers on here have anything to say about it, it appears a lot of people are not aware of it and it could cause lots of people problems.

Let_Us_See

Yes, as a broker I am aware of the legislation and a small number of UK lenders have already stated their position. Your main problem will be no disclosed UK income, but should be placeable with care.

Andy_St

Ok, its good to know some brokers are aware of the issue.

I emailed my bank (HSBC) and my point of contact was not aware of it.

In terms of Income, how much of an issue is it that my salary comes from outside of the UK? would they need additional evidence of earnings? Payslips,Contracts etc?

Thanks for your quick response with this

Andy_St

double post

Annisele

Essentially your question is about future mortgage criteria - and all anyone can give you is a best guess.

There have been a few press articles about it recently . I expect we'll see more press nearer the time - and more lenders making their positions clear.

amnblog

Andy_St wrote: »

I emailed my bank (HSBC) and my point of contact was not aware of it.

No surprise there.