We have a plethora of clients who retain UK property as their main residence but work in Europe, earn in Euros and pay tax in both their home jurisdiction and the country they work in. On the face of it, it can get really confusing to know what to do about your mortgage. Borrow in sterling? Take out a mortgage in Euros? Getting caught up in currency can lead to numerous questions.
In one of our recent cases, our client was looking to remortgage at just shy of £1m but wanted a fixed, five-year product to replace their interest only product. Having changed jobs since taking out their large mortgage, our client was now working in Spain, earning in Euros and paying tax on that income in Spain. However, their main residence remained in the UK, where they also paid tax.
Applying for a Euro mortgage would have been one option; however, this would have severely restricted our client’s choice of products. Therefore, our Associate Director Caroline Burke approached their existing lender with a proposition for a product transfer, which was quickly secured on highly competitive terms. A seemingly complex scenario was made straightforward with the knowledge and network of our specialist adviser team.