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Using Overseas Income on a UK Mortgage Application

Find out whether you can use international income on your mortgage application, why your payment currency matters, and which lenders are attuned to the needs of mortgage applicants with global earning streams!

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

Almas Uddin2023-05-09
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Can You Use Your Overseas Income To Apply For A Mortgage In The UK?

Many UK mortgage lenders are reluctant to consider any income in the assessment process that originates outside of the UK.

There are many reasons for this, including the risk of currency exchange rates and a lack of familiarity with international income streams.

Here we'll explain how the process works and how a lender might assess overseas income. For more support with securing a mortgage using your international earnings, contact Revolution on 0330 304 3040, or drop us a message at [email protected].

What International Income is Acceptable for a UK Mortgage Application?

Of the lenders who will consider applicants with overseas income, the currency makes a difference. Most mortgage providers will include income in the following currencies:

  • Euros
  • US and Australian dollars
  • Yen
  • Zloty
  • Rubles

The primary factors are:

  • Whether you are employed or self-employed abroad?
  • If your business (where applicable) is UK registered?
  • Where you work, and what currency your income is paid in?
  • Which bank your payments are made to, and whether they have UK branches.
  • Where you pay taxes.
  • How long you have been receiving overseas income.
  • How stable the income is.
  • What you wish to borrow, and what deposit you have available.
  • Whether you have a clean credit history and a good UK credit score.
  • Where you want to buy a property, and for what purpose.
  • The type and location of the property.
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How Does Employment Status Affect a Foreign Income Funded Mortgage?

If you're paid in a currency other than sterling, you will find it trickier to gain mortgage approval. Self-employed mortgages for international earners are still rarer because it can be challenging to prove your income and how stable this is.

Your tax residency status is also a factor since few lenders will consider it worthwhile to negotiate an overseas tax regime to calculate your affordability.

Most lenders will only consider overseas income if the applicant is a UK domicile who pays taxes and files accounts in the UK.

Why Does my Income Currency Impact my Mortgage Application?

Some currencies are much lower risk than others. That is because the income is at lower risk of fluctuating in value or because the lender has more experience in specific currencies and can reliably estimate how likely you are to afford your mortgage repayments.

The location of your work also matters - if you are in a nearby European country, this is likely to be seen as lower risk than somebody working on the other side of the world.

Suppose your foreign income comes through a placement with a well known, respected UK company or one with a longstanding presence in the UK. In that case, a lender is far more likely to be comfortable approving your mortgage application.

Likewise, traceable income makes a substantial difference, so earnings in cash in a different currency overseas are highly unlikely to make for an income stream that is considered feasible.

Most lenders will need to see payments made consistently, preferably to a UK bank or banking provider with branches in the UK.

Well-known banks are seen as more secure and lower risk.

Does My Employment Type Impact my Foreign Currency Mortgage Application?

It can do, yes, just as your employment in the UK would impact the assessment of any other mortgage application.

Foreign income earners with a long track history of stable employment with the same international business are at a lower risk. Other factors include:

  • Differences in employment law in other countries.
  • Higher risks, such as a lack of a legal requirement to serve notice or redundancy notices.
  • The likelihood that you will remain living overseas in regular employment if you are new to the role or have recently moved to a different county.

Usually, once you have lived in the same country and been earning your income from the same employer for at least a year, the risk factor begins to drop.

Do I Need a Larger Deposit for a Mortgage Based on Overseas Income?

A lot depends on where your deposit comes from. If held in an international bank, you will need to provide evidence as to where those funds came from.

Can I Get a Mortgage with Bad Credit as an International Worker?

Possibly, but your options will be minimal if you have severe credit issues. There are specialist bad credit lenders who will consider applicants in most scenarios, including those with a history of repossessions or bankruptcy.

You will need to demonstrate other risk mitigation factors to successfully apply for a mortgage on a UK property, both with bad credit and international income streams.

What Other Factors Impact Eligibility on Foreign Currency Mortgages?

There is a lot to consider, hence the requirement to use an independent broker with experience in negotiating this type of lending.

  • Multi-currency mortgages can be very complicated and always require expert advice.
  • Property location matters since you'll find more lenders who will consider lending against a high-value London property than against one on a remote Scottish island, for example.
  • Your reason for borrowing is assessed and will depend on whether you want to purchase a buy to let investment, commercial business premises, or a residential home.
  • The type of property is another determinant since non-standard properties of unusual construction are considered a higher risk. Leaseholds are also less favourable than a freehold investment.

Expert Advice on UK Mortgages Using Foreign Income Sources

While the process might be slightly more complex, it is never impossible to find a UK mortgage based on foreign income.

The mortgage advisors team is wholly independent and whole-of-market, giving us the flexibility to negotiate rate and terms with any lender we determine is most likely to offer you a mortgage at competitive charges.

Give us a call on 0330 304 3040, or drop an email to [email protected] to schedule a good time to talk.

Almas Uddin
Almas Uddin

Founder and Mortgage Advisor

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The content included in our articles, blogs, web pages and news publications is based on information accurate at the time of writing. Note that policies and criteria can change regularly throughout the UK mortgage lending market, and it remains essential to contact the consultation team to receive up to date guidance. The information included on the Revolution Brokers site is not bespoke to any circumstances or individual application scenarios and therefore is not intended to be used as financial advice. The content we share is designed to be informative and helpful but cannot be relied upon to provide individual advice relevant to your mortgage requirements. All Revolution team members are fully qualified, trained and experienced to provide mortgage advice of an independent nature.

We collaborate with lenders and providers who are regulated, authorised and registered with the Financial Conduct Authority (FCA). Should you require specific mortgage borrowing types, some products such as buy to let mortgages may not be FCA regulated. The Revolution team can provide further information about regulated and unregulated lending as required. Please remember that a mortgage is a debt which is secured against your home or property. Your home can be at risk of repossession if you do not keep up with the repayments or encounter any other difficulties in managing your mortgage borrowing responsibly. This also applies to any remortgage or home loan secured against your property, including equity release products.

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