Can I get a foreign currency mortgage?

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Many of our clients are based overseas – be they British expats living abroad, or foreign nationals looking to invest in the UK or Europe. As such, they take their income in the currency of the country in which they reside and work. So, when it comes to investing in the UK property market, they require a foreign currency mortgage, something which is not easily accessible.

The reason they aren’t the most accessible is down to the challenges involved with this type of loan; not many high street lenders offer them, and those who do have very strict criteria when it comes to how and where it should be paid. Additionally, they are limited on what currency they will accept.

Buy to let and residential foreign currency mortgage

Both buy to let and residential mortgages come with obstacles; investors have been hit by the buy to let changes set out by the Prudential Regulation Authority (PRA) earlier in the year, making the stress testing on rental calculations tougher. Furthermore, reduced tax breaks make it a less financially attractive option.

When it comes to residential foreign income mortgages, these can be even more challenging, as lenders may have suspicions about the intended use of the property—for example, if you are rarely in the property, it may be used as a buy to let despite having a residential mortgage.

However, private banks are more geared up for this type of lending, particularly when it comes to large loans, as they have been offering them for years so it’s business as usual for them.

How can Enness help with a foreign currency mortgage?

Enness works with clients from across the globe and, as such, understands the challenges faced by clients who live and work abroad. The team in our newly opened office in Dubai’s DIFC are experts in securing foreign currency mortgages for clients based in the Middle East looking for large loans on property in the UK and Europe.

We pride ourselves on our relationships with lenders, particularly private banks who are more flexible and can take a holistic view of a borrower’s circumstances, including their foreign income.

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