This Halloween we have our Tricks and Treats ready for when you call!
Foreign currency mortgage case study
Mr H works abroad earning his wages in euros. His wife lives in the UK in the family home and has no income. They wanted a 70% LTV interest only mortgage, using only Mr H’s foreign currency income and a 30% deposit. Their current lender could only offer 50% LTV on interest only with the other 20% being capital and interest.
We were approached and happy to do the full 70% LTV on interest only as the property had over £400,000 equity and the applicants plan to sell and downsize in future.
How it works:
- Borrowers need to be a British National
- Standard conversion rate applied to convert income to GBP using the Bank of England rates
- 100% of the converted income is used for affordability
- Affordability assessed as usual using our affordability calculator
- Property can be located throughout England and Wales
Eligible currencies we accept include:
- Euros (EUR)
- US Dollars (USD)
- Canadian Dollars (CAD)
- Hong Kong Dollars (HKD)
- Swiss Francs (CHF)
- Singapore Dollars (SGD)
- Australian Dollars (AUD)
We will happily consider all types of foreign currency loans. This doesn’t just include being paid in a foreign currency but also if an applicant owns a property overseas which they plan to use to repay their interest only mortgage in the UK. We will use 80% of the property overseas value as the repayment vehicle.
We will consider regulated ex-pat buy-to-lets. In this instance the applicant needs to be earning in one of our accepted currencies.
- No credit scoring – all cases are assessed on individual merit
- Tailored underwriting with each case individually considered