Client
A husband and wife couple, both UK-resident expats. The husband was the sole earner on a very good income, but the difficulty arose from the currency he was paid in – he worked for a Saudi company and was paid in Saudi Riyals, despite being a UK resident, and came to us for a residential mortgage using foreign currency income, in line with our experience placing UK mortgages for expats in Saudi Arabia.
Background
The clients had saved a good deposit and had very low credit card use, with no bad credit and no dependants. Their main existing credit commitment was a large car loan, recently arranged. With the husband’s income earned entirely in Saudi Riyals, the couple needed a lender comfortable assessing foreign currency income for a UK residential purchase.
Requirement
- Purchase a residential property in the UK
- Use sole income earned in Saudi Riyals from a Saudi employer
- Work with a lender that specifically accepts Saudi Riyal income
- Achieve affordability despite an existing car loan commitment
Challenges
Lenders who accept foreign income sometimes apply a “currency haircut”, reducing affordability to account for potential future fluctuations in the exchange rate. On top of this, not every lender that accepts foreign income covers every currency, so it was important to find a lender specifically comfortable with Saudi Riyal income, as with any mortgage application from an expat based in Saudi Arabia, rather than foreign income in general.
Solution
As a whole-of-market expat mortgage broker, we knew some lenders would accept foreign income for UK residents purchasing a residential property. We approached specialist expat mortgage lenders to cross-reference the best deal against those that specifically accepted Saudi Riyal income. The lender we identified was happy with the case, and affordability worked easily despite the existing car loan.
Outcome
The couple secured their residential mortgage using the husband’s Saudi Riyal income, with affordability confirmed easily once the right lender was identified. For an idea of what you could borrow on foreign currency income, our expat mortgage calculator gives an instant estimate.
Summary
This case shows it’s possible to use sole income earned through a company outside the UK, in a foreign currency, to secure a UK residential mortgage. As a whole-of-market broker, our expat mortgage advisors can identify which lenders accept your specific currency – browse our other expat mortgage case studies for similar examples.
Key Point
Key things to consider for foreign income:
- Specialist expat mortgage lenders will accept foreign currency, though it varies lender to lender which currencies they cover.
- Some lenders will apply a “currency haircut” to account for future currency fluctuations.
- Some lenders will allow you to live in the UK while working for a foreign company.
Frequently Asked Questions
Can I get a UK mortgage if I'm paid in a foreign currency?
Yes, some specialist lenders will accept foreign currency income.
Which currencies are accepted varies lender to lender, so it’s worth checking your specific currency is covered before applying.
What is a currency haircut on a mortgage application?
It’s a reduction some lenders apply to your income to account for future exchange rate fluctuations.
This lowers the affordability calculated on foreign currency income compared to the same amount in sterling.
Can I get a UK mortgage while working for a foreign company?
Yes, some lenders will accept this even if you live in the UK.
It comes down to finding a lender comfortable assessing income from an overseas employer alongside your UK residency.
Does a car loan affect affordability on a foreign income mortgage?
It’s factored in, but doesn’t automatically rule out an application.
Lenders assess your overall credit commitments alongside your income, so a single existing loan can usually still work if the rest of the case is strong.
If you have any questions relating to an expat residential mortgage, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors.
Expat Mortgages UK is a specialist broker directly authorised and regulated by the Financial Conduct Authority. We work exclusively with expats and foreign nationals buying UK property with overseas income. Your home may be repossessed if you do not keep up repayments on your mortgage.
Call: +44 1494 622 555 Email: info@expatmortgages-uk.com
Related Pages
- navigating currency exchange and international payments – How exchange rate fluctuations and currency haircuts affect your mortgage.
- currency haircuts explained – Why lenders discount foreign-currency income and how it affects borrowing.
- expat residential mortgages – Financing a residential home in the UK as an expat.
- expat mortgage income requirements – The income evidence expat lenders typically expect.
- expat mortgage case studies – Real examples of expat and foreign national UK mortgage completions.