I get the feeling I am a difficult case...

KeRjYuk

Hi all long time lurker on the boards, first time I have needed help!

This is sort of a request for help, sadly with little expectation following the frustration already experienced.

We are looking to find a lender. But currently have a less than usual means of employment that seems to be tripping us up.

I am an engineer with over 10 years experience in a niche market. I have had my own limited company for roughly 5 years (signed off accounts for 4 years) with No significant breaks in work load. So far, other than the ltd company, mortgages should be straight forward affair. Indeed the mortgage on our current house was secured on this basis via a contractor specialist.

However I have just started consulting through an umbrella company (imposed on me) for a firm in Denmark, the Ltd is dormant, and it seems that the added complication of earning in a foreign currency on top of the already difficult status of being a contractor has made it nigh on impossible for me to get a new mortgage.

The income chain looks something like this:
Me<- Currency conversion service (DKK to GBP- this is at my risk, contracted pay is in DKK)<- Umbrella Company<-Recruitment company<-End client.

The UK and Denmark hold a tax treaty with one another and my tax is paid at source by the Umbrella on my behalf. The money that finally arrives in my account is Net of tax and converted to sterling.

Using the various contractor mortgage calculators, I should theoretically be able to apply for far more than we would require- but they don't take account for the foreign earning. Apparently 6 weeks ago it wouldn't have been too much of an issue, but prior to the Brexit vote a number of large UK lenders retracted some of their more unusual areas of lending.

In short,

• UK resident.
• Want to buy a new residential property, failing that a Buy to let/furnished holiday let property (that we can move in to when finished in Denmark)
• I own a house which we want to sell.
• Wife has no income
• Large deposit available (house sale and savings)
• I have a high income (But with complications, see above)
• Credit rating is excellent .
• Little in the way of outgoings (as a percentage against income)

Effectively it seems to be a double whammy of a limited lending market for contractors/self employed and a limited market for people earning over seas. And if a Venn diagram was drawn to illustrate the situation you would have two distinct circles with no overlap.
Lends to ContractorsO OLends to overseas earners

Any one in a similar situation or with any ideas on how to progress?

amnblog

Wow, a Venn Diagram.

A couple of sectors short.

Lends where I want to buy in the UK.

Lends at the level I want to borrow.

Wife (and kids) resident in UK and to live in the property or All family resident in Denmark.

ACG

I imagine if this is possible its going to be some quirky little building society somewhere. I think you really need to sit down with a good experienced broker who will take the time to research as its not going to be easy.

KeRjYuk

Hi amnblog and ACG.

Wife (No kids) is also a UK resident but like me spends time in Denmark whilst I am out here. We are both British citizens on the electoral role and in the UK most but not all weekends. Think of it like some one commuting to London for work on a weekly basis from Manchester, except there is a bit more distance and an odd currency involved.

And yes I have been made aware of the Newbury Building Society which is happy to loan against my current setup for a BTL, however they are very limited on areas as in essentially Berks/Oxfordshire area. We are wanting to make a return to central London.

Current possibilities are either to:

• Negotiate a contract re-write such that the agents receive the Kroner, take the risk of the currency markets in exchange for paying me a lower rate in sterling.
• Sell house
• Buy house/houses

OR

• Sell the house.
• Live out in Denmark and wait until the contract comes up for renewal in December.
• Hand in notice and return to earning in the UK.

Neither of these are ideal as we stand to lose out. But option 2 I think would be more costly since the project I am working on has several years to run and is on an excellent rate.

amnblog

This may be possible subject to a number of things, but very tricky.

Definately one for a broker, and an online one if you are in Denmark most of the time.

Nic_George

Ours is similar minus the ltd company. Received advice from Alexander Hall in London. They all recommend Santander.

amnblog

Not for income in Krone.

KeRjYuk

A quick update to this for any one interested.

Well so far I am sad to say we have been unsuccessful in finding anyone to help in our admit-ably unusual situation.

As a result I have effectively taken my option one as defined above and sought to renegotiate my contract for the next 6 month extension. However whilst looking for lenders against DKK I did find a good few lenders willing to loan against a € income. Due to the fluctuation (also known as plummeting/ free fall/ desecration) of sterling at the moment my paymasters were wanting to impose a hefty hourly rate cut to understandably protect themselves in the current situation, so I have persuaded them to contract me in euros. The Danish Kroner is pegged to the euro so historically there has been very little separation in the two over the last 10 years, so my rate is secured and hopefully my mortgage will be too, before too long!