Rethinking complex income and mortgages

The modern workforce doesn’t always fit traditional lending models. Today, UK professionals aren’t necessarily working a typical 9-5, some are moving across borders or working on a rotational or contract basis. Many expats are even earning in multiple currencies and receiving compensation that extends beyond a basic salary. Yet, mortgage underwriting often still favours ‘traditional’ employment.  

For expats, this could create unnecessary challenges when applying for a mortgage, even when their income is stable. Currently, the majority of our active expat mortgages are Buy to Let, highlighting just how many UK nationals abroad are investing in UK property.

We also see clear patterns in where these borrowers live and work. Amongst the countries with the most members taking out a Buy to Let mortgage with us are Canada, Qatar, New Zealand, Saudi Arabia, Singapore, Switzerland, and the UAE. In these areas, our expat clients’ income often differs from the average UK worker.

At the Marsden, we believe it’s time to shift from viewing complex income as an exception, to recognising it as a typical income path when assessing affordability.

Understanding complex income

Foreign currency earnings is a clear example of this shift. While exchange rates present real considerations, currency shouldn’t automatically disadvantage borrowers whose income is consistent. With no currency restrictions on our Expat Buy to Let solutions, and by applying a 10-20% haircut based on the closing exchange rate at application, we aim to consider genuine earnings while maintaining responsible affordability assessments. For many expats, being paid in a non‑sterling currency is not unusual, it’s standard.

Variable income is another area where traditional underwriting could create hurdles. In sectors such as finance, aviation, energy and global sales, bonuses, commissions and allowances form a significant proportion of a client’s income. This is why we consider 60% of bonus, commission and regular overtime income. We also accept a broad range of allowances including housing, utilities, transport and education. This ensures a more accurate reflection of a client’s real income while abroad.

Self-employed expats encounter their own complexities. Multinational business operations and accounting practices often mean their financial profiles don’t always fit neatly into standard assessment templates. Instead, the Marsden asks for two years of accounts showing a three‑year trading history. We also ask for a recognised accountant’s reference to understand the full context while assessing an application. However, in some scenarios we can refer without.

Fixed-term contracts also reflect a change in how expat professionals work. Project-based roles are increasingly common, so at the Marsden we don’t require clients to be in permanent employment. Our criteria allows for different contract lengths, enabling us to support more clients who may not have permanent employment but do have consistent and reliable income.

When assessing applications, we ask that for those on contracts of 6-12 months, the contract must have been renewed at least once. If the contract is for more than 12 months, the applicant must be more than 6 months into the contract.

Getting to know our expat clients

The expat borrowers we support reflect the diversity of modern working. These include, but are not limited to, the following:

• Army personnel posted to an EU country and living in barracks
• Charity workers posted to a Higher Risk country (considered with full referral)
• UN workers visiting a Higher Risk country once a month, but reside in the UK most of the time
• Seafarers with boats registered to Monaco and based in the UK, but exempt from UK tax
• Oil workers working for international companies in Iraq or Afghanistan, posted 50% on the rigs and 50% at home in the UK

These career paths represent a new normal for many UK nationals building careers abroad. Their income is naturally more complex than salaried employment and they shouldn’t be disadvantaged when it comes to lending.

Focusing on the future

As work becomes increasingly international, the mortgage sector must decide whether to maintain traditional frameworks or adapt to the evolving market. At the Marsden, we believe complex incomes deserve consideration, not exclusion. When we recognise the realities of international careers, we enable our expats to build secure futures back home here in the UK.