It’s inevitable that UK nationals working or living overseas are considering their options during these prolonged Brexit negotiations. The same can also be said of foreign nationals based in the UK.
In recent times we’ve seen a rise in the number of lenders offering expat buy-to-let mortgages or extending their offerings to foreign nationals. This trend is showing no sign of slowing down anytime soon.
Vida Homeloans has increased the loan to value (LTV) on its buy-to-let expat range.
This is now available up to 75 per cent LTV worldwide, with Australia restricted to 70 per cent. Overseas directors are accepted on a special purpose vehicle (SPV), providing the company is UK registered.
Skipton International is also now offering UK buy-to-let mortgages to foreign nationals with immediate effect. Previously applicants were required to hold a British passport.
To qualify, prospective clients will need to have a UK bank account in place to service the mortgage repayments and collect rental income.
This move will allow Skipton to offer lending to those who live outside of the UK but have an established credit footprint.
In other news, we have launched some new buy-to-let exclusives with Together.
These products are available as first or second-charge and offer repayment and interest-only options.
The Mortgage Lender has made improvements to its affordability assessment.
It will now accept child benefit for children up the age of 13 and some form of benefits income provided its employment criteria is met.
Kent Reliance has also undertaken a number of criteria changes, incorporating a reduction in its minimum loan size for specialist buy-to-let cases to £50,000, including limited loans and houses in multiple occupation (HMO).
However, multiple units on a single freehold will still have a £75,000 minimum loan.
It also added that large loans are now available from £750,000.
And, last but not least, Foundation Home Loans announced the launch of its Fix to Flex five-year, buy-to-let deal.
Foundation says cases can be underwritten as a five-year fixed-rate product, assessed on pay rate, but also provide landlord borrowers with shorter-term (three-year) flexibility to exit the deal should they wish to do so.
The Fix to Flex product is suitable for individual, limited company, first-time and portfolio landlords.
It’s good to see innovative options being brought to the market, especially for landlords looking for a combination of certainty and an element of flexibility in what remains a clouded economic environment.