How do different lenders treat non GBP earnings?

BV88

Good afternoon,

Wondering if there are any brokers out there that could give me an insight into how different lenders may treat my situation. From January I took a new role with my company running part of the business in the USA & Canada. As I split my time between the USA and UK I have a deal where I am paid each month a guaranteed net amount in USD and GBP, the company then does a 'gross up' on my payslip. Each month I get one net payment in GBP of 4,500 and bi-weekly I get a payment in USD of 4,531 (Total monthly net = 4,500 GBP + 9,062 USD). I don't really know my gross salary when asked for that information in the online applications as it is all based on guaranteed net. To further complicate matters the USD amount is linked to GBP/USD fx rate fixed on annual basis in May, so I am not out of pocket if the dollar tanks or GBP rises, of course the reverse is true for the company. I also have various bonuses but will not use them with the lender as it further complicates things.

I have talked to a few of the banks, some who explained they would take a set % of the USD earnings, such as 75%, others (well the customer service) just seemed not to know and said I needed to set a meeting/zoom call with a mortgage advisor to conduct a full application. I have done this with Natwest and they will lend to me however they don't offer the length of fix I am after. Ideally I want to get a 7 to 10 year fixed rate deal, I have a 50% deposit on a 475,000 property but ideally want to put down 25%.

Many Thanks

K_S

@bv88 A lot of mainstream lenders will not consider income originating in a non-GBP currency. A handful will, applying a 10-25% reducer to account for currency fluctuations. With a requirement for a 7-10 year fix, that pool of lenders shrinks further.

[Deleted User]

I dont think there is a lender doing 7 or 10 year fixes and also foreign currency.   certainly not a mainstream option anyway. 

drop to a 5year for now.   Your ltv is good and as long as you have a 25% deposit then you shouldnt have many issues.   The haircut on the income can be painful depending on how much you want to borrow and especially how they work out your gross income when it changes each month. 

ACG

It rarely makes sense to do anything longer than a 5 year fixed rate. As there is not much competition in that part of the market, the rates jump up quite a bit. But with the foreign income, it probably throws a spanner in the works.