Foreign wage mortgage....

notspendingvirgin

Hi,
Any help would be appreciated. I am a UK citizen, working abroad with a foreign wage, which gets converted to sterling on pay day. Finding it a problem to re-mortgage, as new laws/rules came into force last year I think.
Making it harder for the likes of me to get a mortgage, as banks just refusing to accept our salary/ exchange rate etc
Any one else in same boat or know of banks that will accept foreign wages??
Ive been declined by First direct, Santander, Clydesdale,

ExpertAdvice

Hi,

Are you looking for remortgage on your residential property (even though you might have let it out since you live abroad) or BTL?

Whats the LTV for remortgage?

Is your company UK based or has offices in the UK?

For how long have you been living abroad and when do you intend to return if at all?

dgtazzman

There's a couple of recent threads on the subject. You can try the following lenders:

HSBC
Natwest
Santander (calculate affordability with a 25% deduction on foreign income to build in a buffer for currency fluctuations, so could be more problematic)

I got my mortgage offer (EURO income) from HSBC a few weeks back, no issues whatsoever.

Might be other, smaller lenders out there that still do it too.

However, I see both FD (HSBC) and Santander have declined you. Which currency is your income paid in? Maybe there is another reason on the background that is getting you declined? USD and EURO shouldn't give issues.

notspendingvirgin

Hi, I only work in Norway, get paid NOK, work offshore (rigs).
Family home, never been let.
Looking to buy husband out, due to marriage breakdown.
LVR approx 50%, can go 40%.
A work mate is also going through same problem, trying to get a new mortgage.
Our company has an Aberdeen office, but we deal only with NOrwegian office.
The banks I've phoned have all said its to do with the new rules.
Thanks for replies, I'll keep looking.

Nic_George

Try RBS too.

dgtazzman

Actually check the lending criteria yourself, don't rely blindly on what people tell you on the phone. I found half the people I talked to myself were totally clueless about their own 'rules' and didn't bother to check till I pointed them towards their own criteria.

EDIT: lenders don't seem to like Norway, most seem to limit themselves to US

* Dollar (USD)
* Euro (EUR)
* Swiss Franc (CHF)
* UAE Dirham (AED)

I think HSBC accepted more currencies, but I can't seem to find the list at the moment, I remember it not being easy to find the first time round on their site...

Would it be worth looking if a bank in Norway would give you a mortgage on a property in the UK?

David_White

Are you paying UK income tax?

notspendingvirgin

Pay Norwegian tax and NI, I have a part time job at home and tax to UK is minimal.

I do not have Norwegian bank account.

Thanks

dgtazzman

Hmmm, there might be part of your problem. EU tax laws dictate income tax must be paid in your country of residence and NI must be paid in the country where you work. Norway isn't part of the EU, but are part of the EEA, so the tax agreements should be similar, if not identical. You might want to check this with a professional in the field.

In my situation, I pay my NI in the Netherlands and my income tax in the UK. This is known to the Dutch tax service, HMRC, I checked it with my union and with an accountant that specializes in seafarer tax. I do a self assessment in the UK every year and thus have the SA302's to show mortgage lenders.

notspendingvirgin

The reason for not getting a new mortgage, is because I earn foreign income, and the majority of the banks wont take the risk due to exchange rate flucuation.
It is a new rule from the EU Mortgage Directive
I phoned HSBC expat and do not qualify because I am a resident.

It is a nightmare.
My current rate is 4%, which I might just have to keep.

Andy_St

Hi

Very similar situation to you, we have got an AIP with Natwest, no issue with the foreign income.

Andy