Foreign currency income loans

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)
  • Japanese Yen (JPY)
  • Canadian Dollars (CAD)
  • Hong Kong Dollars (HKD)
  • Swiss Francs (CHF)
  • Singapore Dollars (SGD)
  • United Arab Emirate Dirhams (AED)
  • 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.

Don’t forget:

  • No credit scoring – all cases are assessed on individual merit
  • Tailored underwriting with each case individually considered 
     
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