Applying for a mortgage with my partner who gets paid in Danish Krones

bridge1234

I am UK employed and get paid in GBP, my partner works offshore in Denmark and gets paid in Danish Krones which is transferred straight from his danish bank account to his english bank. We have been declined twice now once for 90% mortgage (building society) and once for 85% mortgage (Natwest). Those were our only two options all other banks will only offer 80% mortgage. We have until 27th September to have a mortgage for the newbuild we have currently put a deposit onto otherwise we can not get the house. I want to know why this is such a problem and why we have nearly completed both applications with both banks and been dropped at the final stage without a real explanation other than theyve decided they will now only give us 80% mortgage after previously agreeing to the mortgage on a 90% (building society) and a 85% (Natwest) mortgage. My partner gets £76,000 a year and I get £42,000 a year we are first time buyers. 

Phoenix72

Does he complete a self-assessment tax return in respect of these foreign earnings?

kingstreet

There aren't that many lenders who accept foreign currency income and many also have a lower maximum loan to value on newbuilds, as you seem to have found with NatWest.

ACG

Have you spoken to a broker? 

In the back of my mind I feel like there are a couple of other lenders who might consider it, I do not know up to what LTV though. I would look for someone who does a lot of these types of applications as it is quite niche. I have been a broker for 12 years and I do not think I have ever had a case like this hit my desk. 

amnblog

You are simply using the wrong Lender, there is a mainstream Lender than should do this.

Consultant a decent independent mortgage broker.

bridge1234

ACG said:

Have you spoken to a broker? 

In the back of my mind I feel like there are a couple of other lenders who might consider it, I do not know up to what LTV though. I would look for someone who does a lot of these types of applications as it is quite niche. I have been a broker for 12 years and I do not think I have ever had a case like this hit my desk. 

yes we have had two mortgage advisors. I thought our case would be very common as so many people work offshore in this day and age which confuses me as to why it is so difficult for us. 

Hoenir

bridge1234 said:

 gets paid in Danish Krones which is transferred straight from his danish bank account to his english bank. 

A comfortable margin would need to be factored in to account for the fluctuating exchange rate. 10% swings aren't uncommon. 

MWT

bridge1234 said:

ACG said:

Have you spoken to a broker? 

In the back of my mind I feel like there are a couple of other lenders who might consider it, I do not know up to what LTV though. I would look for someone who does a lot of these types of applications as it is quite niche. I have been a broker for 12 years and I do not think I have ever had a case like this hit my desk. 

yes we have had two mortgage advisors. I thought our case would be very common as so many people work offshore in this day and age which confuses me as to why it is so difficult for us. 

I've worked outside the UK for many years now, but I always structured things so I could be paid in GBP, in the UK, thus avoiding the uncertainties of receiving payment in another currency and receiving the funds in a different country before transferring them to the UK. 

With roughly 2/3 of your joint income subject to this level of uncertainty I am not surprised that you've had lenders back away from going over 80%, but hopefully there will be one that can help...

housebuyer143

bridge1234 said:

ACG said:

Have you spoken to a broker? 

In the back of my mind I feel like there are a couple of other lenders who might consider it, I do not know up to what LTV though. I would look for someone who does a lot of these types of applications as it is quite niche. I have been a broker for 12 years and I do not think I have ever had a case like this hit my desk. 

yes we have had two mortgage advisors. I thought our case would be very common as so many people work offshore in this day and age which confuses me as to why it is so difficult for us. 

It's a foreign currency mortgage which are not standard unfortunately. If she got paid in GBP it wouldn't matter if she worked overseas as it wouldn't be a problem. The issue is some of your income is now dependent on exchange rates which adds a new level of volitlity into the lending and the banks are not always on board with this, especially at higher LTVs. New builds tend to need a higher deposit in general anyway, and factor this is and you don't have many options.