European client with contract in sterling rather than euros?

[Martin@AS Financial]

There are a handful of lenders who will consider income that is not earned in sterling both on a contractor basis and working via a ltd co.

Something to be aware of is that some banks may apply a haircut to allow for currency fluctuations.

It's always important to be upfront with these things as a lender could plausibly ask to see your ltd co bank statement to demonstrate your invoices coming in as well as your contract.

[jmo21]

Now I'm not suggesting you could lie to a lender, or that you should...but it is possible to take your copy of the contract and amend the figure to be sterling. Your accounts will back up the amount you were paid. Don't mention to the broker / lender anything about Euros unless they ask.

Aye, mortgage fraud OP, that's the way to go!

[Bodger]

I've come across this lending requirement before, it does narrow down your choice of lenders.

Now I'm not suggesting you could lie to a lender, or that you should...but it is possible to take your copy of the contract and amend the figure to be sterling. Your accounts will back up the amount you were paid. Don't mention to the broker / lender anything about Euros unless they ask.

[Boris4PM]

Apology accepted, I will look out for less naff questions from you in future.

Certainly, it's possible. However, clients will generally prefer that you take the currency risk, so it entirely depends on your leverage and how much you care. Personally, I find it acceptable/preferred to invoice in whatever currency the client wants because the currency risk is a small fraction of what I'm billing and it's a doddle with Wise.

Well, if it wasn't really for the way that lenders view contracts that mention Euros, I really wouldn't care if they were paying me in Euros. It's only an issue as I am hoping to remortgage soon and want to maximise my lender spread.

If you think the Euro will strengthen against sterling, then go for Euro billing. If you think the Euro will weaken, go for sterling billing. Be advised, you may not have a choice - that you might have to accept the currency the agency is offering.

I made about €3000 when Stirling dropped over the Brexit referendum. Happy days. Totally unplanned, btw.

Not really a matter of where I think the exchange rate will go. This is about meeting lending criteria for them mortgage folk.

Luckily no agent involved so can perhaps influence the client to word the contract in £. Let them take a hit on the currency fluctuations.

[NotAllThere]

If you think the Euro will strengthen against sterling, then go for Euro billing. If you think the Euro will weaken, go for sterling billing. Be advised, you may not have a choice - that you might have to accept the currency the agency is offering.

I made about €3000 when Stirling dropped over the Brexit referendum. Happy days. Totally unplanned, btw.

[jamesbrown]

Jurisdiction and governing law, on the other hand, is a completely different matter, and you may want to focus on that if the client hasn't already agreed to England & Wales for both (assuming you're based in one of them).

[jamesbrown]

I do apologise for the naffness in my question. But it's not really pointless. I was just wondering whether that is an avenue that could be pursued, i.e. getting a European contract that mentions sterling rather than euros.

Apology accepted, I will look out for less naff questions from you in future.

Certainly, it's possible. However, clients will generally prefer that you take the currency risk, so it entirely depends on your leverage and how much you care. Personally, I find it acceptable/preferred to invoice in whatever currency the client wants because the currency risk is a small fraction of what I'm billing and it's a doddle with Wise.

[Boris4PM]

If it’s a really big issue for you, and you don’t want anything to show in Euros, then go through a factoring company who will pay you in sterling, for a fee.

As for showing lenders my contracts (which you have stated they have asked you for), I would show them my company accounts and personal bank account.

The issue is the contract, not the actual payment. If the lender is demanding to see contract, I can hardly then just tell them to look at my company accounts I think.

TBF, your question was a bit naff and pointless and the title is a statement with a question mark.

“Yes”, then. I have contracted with overseas clients in a bunch of currencies, including GBP. I’m sure that is helpful for you to know…

I do apologise for the naffness in my question. But it's not really pointless. I was just wondering whether that is an avenue that could be pursued, i.e. getting a European contract that mentions sterling rather than euros.

[jamesbrown]

I don't believe that was my question.

TBF, your question was a bit naff and pointless and the title is a statement with a question mark.

“Yes”, then. I have contracted with overseas clients in a bunch of currencies, including GBP. I’m sure that is helpful for you to know…

[WTFH]

I don't believe that was my question.

Well, the answer is that I’ve never taken a contract in a Euro-zone client in anything other than Euros. In the current market if I was looking, I’d not turn down work based on the currency.
If it’s a really big issue for you, and you don’t want anything to show in Euros, then go through a factoring company who will pay you in sterling, for a fee.

As for showing lenders my contracts (which you have stated they have asked you for), I would show them my company accounts and personal bank account.

[Boris4PM]

You'll find that they are not interested in the name of your end client, and neither should they be.

Did I even state that?

Your client would be paying into your Ltd (unless you're going through an umbrella).
What do you mean by "the dreaded euros"?

Lenders appear to have an aversion to Euros when they look at contracts. Hence my question on the contract front. Fluctuating exchange rates...

To answer your question, I always invoice in the client’s local currency, it’s just easier. You will get close to the interbank rate with Wise.

I don't believe that was my question.

[jamesbrown]

Actually, mortgage lenders will care about this insofar as you want a contractor mortgage based on day rate. This will definitely narrow your options.

To answer your question, I always invoice in the client’s local currency, it’s just easier. You will get close to the interbank rate with Wise.

[WTFH]

Hi all,

Have a nice contract lined up with a European client - ideally I'd want it stating sterling rather than euros. Does anyone here have a EU client contract that states sterling?

I have nothing against being bad in euros and will accept a hit with exchange rates, my only issue is with mortgage lenders reluctance to consider EU contracts that state the dreaded "euros".

TIA!

Mortgage lenders are interested in what goes into your personal account. You'll find that they are not interested in the name of your end client, and neither should they be.

Your client would be paying into your Ltd (unless you're going through an umbrella).
What do you mean by "the dreaded euros"?

[Boris4PM]

Hi all,

Have a nice contract lined up with a European client - ideally I'd want it stating sterling rather than euros. Does anyone here have a EU client contract that states sterling?

I have nothing against being it based in euros and will accept a hit with exchange rates, my only issue is with mortgage lenders reluctance to consider EU contracts that state the dreaded "euros".

TIA!