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      04-25-2015, 01:38 PM   #1
rovers_andy
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Foreign Earnings = Mortgage Problem

I don't know if this will affect anyone else here but the EU will be bringing in a piece of legislation next year called the Mortgage Credit Directive.

Its dealing with people who take out a mortgage in a currency different to their earnings, it seems to be targeting people buying holiday homes abroad but will also have the consequence of making it very difficult for people living in the UK but not earning in Sterling to get a mortgage as mortgage le nders would have to offer a mortgage in the same currency as your earnings

As someone hoping to buy a house next year and having worked hard to save a 20% deposit this could make it almost impossible for me to have a mortgage.

Due to the nature of my job i'm paid in US Dollars but live in the UK

http://www.telegraph.co.uk/finance/p...day-homes.html

https://www.fca.org.uk/static/fca/documents/ps15-9.pdf

Key part is section 2.30

This sucks
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      04-25-2015, 07:09 PM   #2
makkan00
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How about those who work in middle east? Dubai, Saudi
As I may shift there for few years.
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      04-26-2015, 03:47 AM   #3
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Quote:
Originally Posted by makkan00 View Post
How about those who work in middle east? Dubai, Saudi
As I may shift there for few years.
If you get the right contract, you wouldn't need to worry about mortgages. I know a couple of people who have given up stable, longterm, well paid NHS positions to go to the Middle East for a few years. They will/are earning x3 their NHS salary, totally Tax free, with all their accommodation/travel/substance costs all covered.

I have no idea how it works when you bring the money regrades to tax etc, but if your after fast it's a no-brainer (and happy to leave your family/friends or 24-36 months). Not something I could do but plenty of people manage it. One chap has a A8 in the Uk, one in the US, parked up at airports just for when he comes for visits...The last time I saw him, he took one look at my E90, and asked me why I was still driving a 'piece of rubbish'
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      04-26-2015, 06:12 AM   #4
rovers_andy
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Quote:
Originally Posted by makkan00 View Post
How about those who work in middle east? Dubai, Saudi
As I may shift there for few years.
I don't know, i have asked my bank for their position on this and i'm awaiting a response, same with my financial advisor who will speak to some mortgage brokers.

It all comes down to what currency they pay you in, so if you go to the middle east and earn in pounds my understanding is that would be ok
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      04-26-2015, 08:01 AM   #5
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Quote:
Originally Posted by gangzoom View Post
If you get the right contract, you wouldn't need to worry about mortgages. I know a couple of people who have given up stable, longterm, well paid NHS positions to go to the Middle East for a few years. They will/are earning x3 their NHS salary, totally Tax free, with all their accommodation/travel/substance costs all covered.

I have no idea how it works when you bring the money regrades to tax etc, but if your after fast it's a no-brainer (and happy to leave your family/friends or 24-36 months). Not something I could do but plenty of people manage it. One chap has a A8 in the Uk, one in the US, parked up at airports just for when he comes for visits...The last time I saw him, he took one look at my E90, and asked me why I was still driving a 'piece of rubbish'
Tell me about it mate....
My career started in middle east and I worked for American Hospital. It was not very well paid (typical American trying to get max out of you) however I took to role to get experience.

However in few years time, I will be go back to middle east to 'enhance' my savings. As you said, some of my mates have gone there and earning 2-3 times more than here.

I think if you get a 'right offer' then you can save decent enough money to buy the house using 'Cash'. I doubt that one will require mortgage.
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