Mortgage issues with contract paid in Euros - anyone else?

[Boris4PM]

Looking to buy my partner out of our house and will probably need a mortgage of 350-400k to do so. Having spoken to one specialist mortgage advisor, it's been mentioned that if my contract with EU client mentions payment/hourly rates in Euros, then that will severely limit my scope with lenders due to exchange rate issues yada yada...

Current mortgage was obtained on merits of my partner (steady permanent job) with me as no.2 (but with greater 'income').

Has anyone else had this issue?

Other option is to get the contract setup with UK agency/payroll company, but then I shoot myself with being inside of IR35. Or get client to mention £ and pay me in £ (which may be one step too far for them).

Or am I missing a trick?

[jamesbrown]

Yeah, that is a thing. Severely restrict, but not eliminate. There are mortgages based on profit over the last two years, for example, but there are many more options for day rate, invariably in Sterling only.

[Bodger]

Yes, unfortunately it does whittle down the lenders a bit.

It makes it even more problematic when their are ther factors in play - unusual property, commercial applications, buy to let, ltd company purchase.

We've found it almost impossible to get a lender for for a holiday let purchase, just because all the compounding factors rule out different lenders for different reasons.

[Lance]

it reduces choice. The risk is that a currency fluctuation could reduce your ability to cover repayments.
Having said that, the interest rates rises in the last 12 months has done more than any currency fluctuation. So there is a double whammy there. At least interest rates are likely to have reached, or be close to, a peak.

There are still lenders. And the calculations they do are around your ability to pay so you just need to find them. If you have lots of equity then you're in a better position as well. LTV is important to finding good deals.

[Smoggy]

Yes there will be less choice but should still be possible. I used Freelancer Financials to get a mortgage with NatWest when my contract was in Euros. Give them a ring.