Non-sterling income limitations

nannoo1955

I retired from a job abroad three years ago on a good guaranteed private pension. I discovered that I cannot get a mortgage as new rules state that all mortgages in the UK will only be approved if the income is in sterling at source.

Does anyone know if this is true for loans too? My bank insists that I apply first, but this will hurt my credit score (which is excellent) if I am refused. Thanks for any advice.

Arleen

There is no such thing as excellent credit score or credit score at all for that matter - it's made up and random. What matters is what is on your file.
And single loan application will not be the end of the world, or even noticed unless it's joined in a cohort of other applications. Whether it's refused or approved will not show on the report.

And I am not sure what rule you are referring to in regard the non-sterling income?

nannoo1955

Hi Arleen. Not sure what you mean 're the credit score - I checked mine on Experian as per Martin Lewis's suggestion. Information on the mortgage directive is given in this article: https://www.ft.com/content/95e154e8-685b-11e5-97d0-1456a776a4f5

Arleen

I mean that credit score doesn't matter - it's a made up number that only you can see. What matter is what is on your credit file, nothing else, and all it will show is that there was a credit search against you in regards fo a loan. And that is it.

And that article is behind a paywall, so I can't comment on it, but I guess it regards the mortgage credit directive passed last year in the EU. That only affects mortgages, not loans, and even with mortgages it doesn't prohibit getting one when you earn in foreign currency, just makes the process more problematic with the passing of affordability checks.

iolanthe07

A foreign income is regarded with suspicion by some lenders because foreign exchange rates fluctuate, but it shouldn't be a no-no. In fact it may even be a plus - my US pension has gone up by about 12% in sterling terms since the Brexit vote.

nannoo1955

Yes, Iolanthe, mine has too. It is in Swiss francs, which is such a strong currency - but I cannot remortgage using a Swiss franc income in the UK anymore. I have never had a problem getting mortgages in the UK in the past when I lived in Switzerland. It is such a silly rule, and I only hope it is changed.