Mortgages in Euros

How can you get a UK mortgage if you’re paid in euros?

We get enquiries most weeks from people about this. They primarily work in the Republic of Ireland, which is natural as we’re based in Northern Ireland.

Clients might be based in the Republic of Ireland and want to relocate into Northern Ireland but are going to continue to work in the south. We also help people who already live here in the UK but work for companies based over the border and are paid in euros.

Not all lenders will accommodate it, but some high street lenders will, with certain criteria attached. For example, the minimum deposit might be 10% or 15%. But it can be done.

Can anyone take out a mortgage if they are paid in euros?

Yes, as long as they’re resident in the Uk with a UK address and they fit the criteria of that mortgage lender.

Someone based outside the UK who wants to purchase a property here will need to live here for a certain period of time. A short term rental would be enough. But anyone can apply, there’s no restrictions on any particular type of person, as long as they fit the criteria.

Is a euro based income acceptable to British mortgage providers?

Yes, but only certain lenders will accept them. Only a handful of the main high street lenders do it – not all of them. But yes, it is acceptable to certain lenders.

Which lenders accept euro income?

The first one that springs to mind would be Danska, then Progressive Building Society, HSBC and Natwest. Those are our go-to lenders for people living here and getting paid in euros.

Each of those lenders would have different criteria, so we know who to go to for a particular type of applicant, depending on their circumstances.

How complex is the mortgage application if you are paid in euros?

It’s not particularly complicated. It’s fairly similar to a standard application. The main difference is that the lender might want to do an exchange rate calculation on the day of the application. Currency fluctuations obviously happen on a daily basis, so that may not always work out in the borrower’s favour.

Some lenders like HSBC won’t do a currency calculation. They will just reduce the gross income by 20%, so you’ll be already at a slight disadvantage. But with euros it’s less stringent with lenders as it would be other types of foreign currency.

What if you are living in the UK and looking to buy a property in Spain, France, Portugal or Italy?

To get a mortgage there would be a matter for the regulatory bodies in those respective countries. We can’t give mortgage advice on properties outside in the UK.

But if you’re interested in raising money on a property here to purchase property in another country, that would have the criteria as a normal mortgage. And if you have euro income, the same restrictions would apply.

How does my employment status affect mortgage applications as a euro earner?

Similarly to applications with income in pounds sterling, lenders will ask for payslips if you’re employed, or evidence of income for the self-employed. If you work in euros, that would require the equivalent of tax calculations and proof that tax has been paid in that country.

In the UK that would be SA302s, your tax calculations and tax year overviews. There is something very similar in the Republic of Ireland – their tax system is not identical but it’s very like the UK’s.

I’m not 100% sure for other European countries but lenders would certainly look for that. That’s the difference between self-employed and employed, where the evidence you need might vary.

What documents do I need to show lenders when applying for a mortgage in euros?

You will need payslips, bank statements, proof of deposit and evidence of any self-employed income. There may also be a request for a credit report from the country where you receive income.

Let’s imagine someone relocating from the Republic of Ireland who is going to continue to work for a Republic-based company and be paid in euros. If they had no credit history in the UK, some lenders will accept credit reports from that other country, rather than expecting them to build up a credit file here before they can get a mortgage.

They will need an address here, but the credit file can be used from the country they’re paid from.

What impact could my pay have on the mortgage?

Much the same as income in sterling, the lender applies its affordability checks against the income, post currency conversion. They’ll offer a maximum lending amount based on that affordability. It’s not too onerous. There are just fewer lender options, obviously.

Can I still get a mortgage in euros if I have bad credit?

It depends on the bad credit. The problem you may have is that the UK lenders that normally lend to people with poor credit aren’t necessarily the ones that offer mortgages for euro income.

Normal criteria will apply obviously for a mortgage around credit score. But we won’t have the option to use Kensington or Accord, for example, who are more flexible around credit score.

So if you are earning your income in euros and you’re looking to buy property in the UK, you would need your credit file to be in fairly good order. [podcast recorded in February 2024]

Can I get a mortgage if I am self-employed and paid in euros?

You would have to provide the lender with the equivalent tax calculations for the country you’re paid in – but the principle remains the same. You might find it a little more difficult, depending on which country it is.

We deal mostly with applicants from the Republic of Ireland and it’s fairly straightforward, but that’s not to say that it’s the same in Spain or France or other countries in the euro.

Are you able to remortgage if you’re paid in euros?

It would be more or less the same as for a purchase, if not more straightforward. People relocating from the Republic of Ireland to Northern Ireland, who continue to work in the Republic, sometimes struggle due to the lack of address history.

So they find somewhere to rent in the UK before applying for the mortgage. But with a remortgage, this isn’t going to be an issue – you already have a UK address. That makes it more straightforward.

How can a mortgage broker help in this instance?

Mortgage Brokers like ourselves have the knowledge of lender criteria to help clients find the right mortgage for them from the start – whatever their situation is.

If it’s at all possible for the client to get a mortgage based on their income and circumstances, we’ll be able to find them a suitable deal.

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The information contained within was correct at the time of publication but is subject to change.