The Directive requires that lenders have to follow additional new procedures if they are to offer mortgages in one currency which is to be repaid by the applicants in another currency. The reason for this was to offer consumers additional rights to help them deal with currency fluctuations.

For example if consumers took a mortgage in Sterling, but were paid in Euro’s then they could end up having to make much bigger mortgage payments and pay back more if Sterling strengthened against the Euro.

As a result of these changes, quite a few lenders have decided they will no longer consider non sterling income when assessing affordability for applications.

However, we do typically assist customers who are paid in Euro’s, Dollars or other currencies obtain a UK mortgage.

The typical scenario’s we have helped with are:

Airline pilots paid in Euro’s
Seafarers who are tax exempt and paid in multiple currencies
Cruise ship workers paid in US Dollars
Customers who work in the Republic of Ireland and live in the UK
Gas, Oil and Engineering contractors who typically have a family residence in the UK and are paid

As a general guide, we can look to assist with a mortgage up to 95% of the property value for customers paid in Euro’s, Dollars and other income as long as they live in the UK.

For customers who live overseas then the maximum mortgage would be 80% of the property value.

The information provided above is a guide only. If you would like to discuss your particular situation with one of our specialist foreign currency mortgage advisers then either send us an enquiry using our online enquiry form or call us on 0203 621 5696 from the UK or +44 203 621 5696 from overseas

There are many decisions to make when a couple decides to divorce or separate. Where children are involved, arrangements to be agreed on regarding where they will live and how much time they spend with each parent. Where there is just the couple to consider, they may need to rearrange finances and possessions. In any scenario where there is a jointly owned property, there are considerations to be given to future living arrangements.

Often, a remortgage is needed, so that one partner retains the title deeds of the property and the other is able to move on without liability for the previously jointly-owned property. Where finances allow, this can be a fairly straightforward transaction, whereby one partner pays a sum to the other or agrees that the whole property is part of a settlement.

Frequently, financial constraints lead to a less simple scenario, whereby a full restructure of any existing mortgage lending needs to take place, to remove an ex-partner from the title deeds of the property and from the mortgage. If the remaining homeowner is able to afford mortgage payments and living expenses alone, then this simply mean a divorce remortgage, removing one partner and increasing borrowing to pay for the ex -partner’s share. If the property is included in an agreed settlement, a divorce remortgage can remove the ex-partner from the mortgage and title deeds, leaving the remaining partner as the sole homeowner, but also with sole liability for the mortgage.

However, it is not always possible to arrange a straightforward remortgage. There may be credit issues which cause difficulties for the remaining partner when approaching lenders. There may be young children involved, where the parent who is the primary carer is not working full time and may need to use maintenance income to fund mortgage payments. If there is no maintenance order and the couple are unable to agree, then funds available for mortgage payments may be finalised via the Child Maintenance Service (CSM), previously the Child Support Agency (CSA). Lenders are not always accommodating of either maintenance or CSM payments and this can cause frustration to couples who are already facing upheaval.

Another way to ensure that a partner with less financial resources can remain in their home, is for parents or, depending when the divorce or separation occurs, adult children, to act as a guarantor and assist with mortgage payments. It is often the case that the remaining partner might be able to afford basic living expenses, but may not be earning enough to stretch to paying a larger mortgage, which would release capital to pay their ex-partner for their property share.

Sometimes, the only way to ensure a settlement for both parties is to sell the previous marital or co-owned home and buy two new properties within the appropriate price range. Though there may still be the need in this instance for a guarantor, particularly if there are young children and an unemployed primary carer, this allows for a clean break.

There are many options for divorcing or separating couples to consider, though divorce mortgages or divorce remortgages offer the chance for couples who may be facing a lot of other change, to embrace a fresh start either in their current home, or in a new property.

Not only are modern medical advances enabling us to live longer, but they are also allowing us to live a better quality of life as we age. According to the Office of National Statistics, the UK population was the oldest it had ever been, in mid-2014. Increased health and wellbeing in older age mean that not only is the age of retirement gradually rising in the UK, but many people of retirement age need to continue working to fund their living expenses, or may choose to remain actively employed because they are able to do so.

The aging population has led to increased demand for mortgages for over 60s, since there are many reasons why older borrowers would choose to, or need to continue paying a mortgage. Many people who expected to retire at 60, are now working for longer, either because of their financial needs, since the state retirement age has increased, or because work is a meaningful pursuit and there is no reason to stop. Administrative or managerial roles in particular are often physically undemanding, making it feasible for many over 60s to continue to work for as long as they can. Often, older borrowers looking to secure an over 60s mortgage, will have a state pension and possibly private pension income, all of which may help service a mortgage.

Older borrowers are more likely to be longer term home owners, so increases in property prices may have resulted in there being a substantial amount of equity in their home. In contrast, whilst longevity is a positive outcome because of modern advances, the socio-economic implications are that older borrowers are now more likely to consider mortgages for over 60s.

Whereas people in their thirties may previously have expected to receive an inheritance to assist with buying their own home and/or funding school fees, now that their parents are living much longer and need funds to maintain their own lifestyle, younger borrowers are finding it harder to save a deposit for a home of their own. For over mortgage borrowers over 60 with adult children who are struggling to get onto the property ladder alone, the ability to release some capital from a family home may provide a way to help secure a first time buyer mortgage, through gifting a deposit to their children which makes a purchase feasible.

Over 60s may also have access to lump sums from a pension fund, which they may choose to invest in buy to let property, by obtaining an over 60s buy to let mortgage. A second home may be appealing, either for personal use or it can be purchased on an over 60s holiday let mortgage which allows an additional income source.

For a multitude of reasons, mortgages for the over 60s to 90s often make perfect sense.

Buy to Let mortgages have become increasingly common in recent years. Even with recent changes to tax allowances on rental income and stamp duty increases, clients are still looking to invest in property as an extra income stream. Often, second properties are purchased purely to let out to tenants who are in no way related to the landlord, in which case a standard buy to let mortgage can be granted. Buy to let mortgage lending requires that the rental income is enough to cover the buy to let mortgage payments by the lender’s required margin.

Clients may choose to not to invest in buy to let property which they cannot make use of, so may consider buying a second home for their own use as a holiday home. Often, holiday homes will be somewhere picturesque and peaceful, where clients can get away from their everyday routine and enjoy some relaxation.

For most people though, holidays and weekends away are pleasant and necessary, but can only be taken as frequently as the rest of life allows, therefore it makes sense to choose a property to let out as a holiday let. Holiday buy to let mortgages differ from buy to let mortgages, in that they assume that the property will not always be let. Unoccupied periods are simply considered void periods with a standard buy to let mortgage. No income is generated when the property is empty which may be a challenge for landlords, unless they have saved adequate funds to cover mortgage payments until the property is re-let. However, with a holiday buy to let, though the expectation is that rental income is not always consistent, when calculated across a month or a year, the income generated is usually higher than standard rent. This means that the property need not necessarily be rented, but may still generate more than adequate income to pay a holiday let mortgage, whilst making the owner a profit.

Holiday buy to let mortgages present their own challenges, since the properties may be unusual, such as a flat above commercial property in a seaside town. Though the flat can be easily let, lenders may not consider a holiday home above a shop or office to be straightforward mortgage security. Some local authorities may choose, when granting planning consent, to allow land to be developed, provided that a number of the homes being built are not occupied for the full year, so a holiday home may have restrictive clauses which mean that it has to be empty for some weeks of the year. The idea is to entice holidaymakers and tourists to the area, though lenders may be hesitant to lend since the property may be unoccupied for some of the time.

With a holiday let mortgage, it is possible to buy a holiday home which may generate good income and offers a feasible alternative to a standard buy to let purchase.

Owning a property for the first time can be both a daunting and an exciting prospect. For first time buyers, home ownership brings the freedom to put their individual stamp on a property by choosing décor and furnishings and also enables putting down roots to become part of a community. Local schools and amenities may be important, particularly to young families, or couples intending to start a family.

Many young people who are just starting out in their careers would like to own their own property, but may feel like they are unable to secure a mortgage, as they don’t have a long income track record of income. They may be newly qualified, still in a training scheme or have recently begun working. Younger buyers may also not have saved a large enough deposit for a home, as they are often paying rent or may be living at home with parents.

Despite the challenges, according to the Council of Mortgage Lenders (CML), mortgage lending to first time buyers has seen a recent increase, partly due to the recent drop in the Bank of England Base Rate. For those who may be able to afford mortgage payments but have not saved a large deposit, there are several options which may enable people who have never owned a property, to secure a first time buyer mortgage.

Parents who are financially established and have built up capital in their own property, may be able to afford to fund additional monthly payments, to assist adult children by remortgaging their home. This may mean either taking a mortgage on a previously mortgage free property, or taking a larger mortgage to release some capital. Often, if parents have lived in a property for a number of years, their home may have increased in value enough to provide a lump sum as a gifted deposit for offspring.

There are also schemes offered by the government, which are specifically aimed at enabling first time buyers to secure a first time buyer mortgage on affordable housing. The Help to Buy: Shared Ownership scheme allows first time buyers to get onto the property ladder, by taking a first time buyer mortgage on part of a property (between 25% and 75%), whilst renting the rest from the local council.

For London properties, which are often more expensive than the rest of the country, the Help to Buy: Equity Loan scheme will run until 2021. This scheme enables first time buyers with a 5% deposit to take a loan for part of the deposit for up to 40% of the property value in Greater London, which means a first time buyer mortgage of as little as 55% of the property price.

The Right to Buy scheme allows council tenants in some areas of the UK to buy their own property for a substantial discount. There are also plans to introduce a Starter Home scheme, offering the potential of a 20% discounted price on a new build home.

Whichever way they decide to approach it, there are options for first time buyers looking to take the exciting steps towards securing a first time buyer mortgage.