Although there are many expat borrowers with UK buy to let properties, it is often challenging for these clients to secure mortgages that suit their circumstances. Expat borrowers are considered more of a risk by lenders, and accordingly, mortgage products are generally more expensive.
Fortunately, we work with almost every lender on the market—and this enables us to connect you with an appropriate lender. Our product of the week comes from an offshore bank who are ideally placed to assist expat borrowers, as they have a long history of serving this market, and are therefore very experienced in dealing with the nuances of such cases.
This lender offers a specialist expat mortgage product, which can be used to remortgage your UK buy to let for loan sizes up to £3million. This product is offered at a fixed rate of 3.99%, and is available up to 75% loan to value (LTV).
In a turbulent market, this product can provide certainty for buy to let investors. With a 5-year fixed rate period, stretching to January 2023, the rate of this product will remain constant for several years to come.
- 5-year fixed rate
- Up to 75% LTV
However, the real appeal of this product is that it is suitable for those who are looking to borrow maximum amounts on the basis of the rental figure, instead of requiring large amounts of other income. Many expat lenders will also require you to have significant personal income, in addition to being able to cover 145% of your mortgage income from rental payments alone. This lender stress tests at 125% at 3.99% (the payrate), meaning you can borrow more, and only requires a personal income of £40,000, or £60,000 if you’re self employed.
Furthermore, lender arrangement fees on mortgages for expat borrowers are typically quite high—in the region of 0.5%-2%. On a large loan, this could represent a significant saving. This product is available for properties in both England and Wales.