Our Expat Buy to Let range offers options for customers renting their property in the UK. Find out more about our criteria using our tool to see how it affects your clients. If you have a case outside of criteria, get in touch.
85 (at the end of the mortgage term) –please refer to our Maximum Mortgage Term Guidelines.
Maximum Number of Applicants
£37,500 per application.
Lending to Companies or portfolio landlords is not accepted.
Sole Application –Applicant must be a UK citizen.
Joint Application –1 applicant must be a UK citizen and the other must be either an EU national or have permanent right to remain.
Joint Application –The salaried applicant must be the UK citizen.
CCJs & Defaults
CCJ’s/Defaults within the last 3 years are not acceptable.
CCJ’s/Defaults => 3 years prior to application are acceptable up to a maximum £2,500, subject to an explanation and being cleared/satisfied 12 months prior to application.
No other adverse entries must show on credit file.
CCJ’s/Defaults are not acceptable over 75% LTV.
Mortgage, Loan and HP arrears & missed payments => 3 years prior to application, status 1’s and 2’s are accepted – status 3 or above not accepted.
Mortgage, Loan, HP arrears and missed payments within the last 3 years are not acceptable.
Credit Card, Mail Order, Utility commitments => 3 years prior to application – up to and including status 2’s are acceptable.
Credit Card, Mail Order, Utility <3 years prior to application – Status 2 –ok to proceed subject to the commitment being up to date for a minimum of 12 months prior to application. =<Status 3 are ok subject to commitments totalling less than £500 and being up to date for a minimum of 12 months prior to application.
Minimum of 6 months in current job and not in probation.
Evidence of employment history is required to cover the last 12 months.
The applicant must have been contracting for a minimum of 1 year with a further 2 years experience in the same field.
Directors with a shareholding of more than 25% will also be classified as self employed.
Please refer – The applicant must have been self employed for a minimum of 1 year with a further 2 years experience in the same field. Access to English accounts prepared by a Certified Public Accountant.
Interest Coverage Ratio
Interest Coverage Ratio (ICR) – 125% minimum rental cover based on reference rate of 5.5% or chosen product rate + 2% (whichever is the higher of the two) for UK Basic Rate Tax Payer. Or for Higher Rate Tax Payers 145% at 5.5%.
If there is a rental shortfall and your applicant is paid in a currency which is on our approved currency list, we will take a limited amount of earned income into our affordability assessment.
The rental income must be 115% at 5.5% as an absolute minimum, with the shortfall made up from earned income.
If earned or self-employed income is being taken into account to support the loan, the mortgage term can only extend beyond the applicant’s retirement age if pension income can be evidenced. Please see our maximum term guidelines for more information.
There are no currency restrictions on Expat BTL applications if the rental income passed the 125% @5.5% or chosen product rate+ 2% (whichever is the higher of the two) for UK Basic Rate Tax Payer. Or for Higher Rate Tax Payers 145% at 5.5%.
When calculating income, we use the worst case from the following 2 scenarios:
• The lowest exchange rate over the last 5 years.
• Exchange rate on the date of application less 20%.
• US Dollar
• Canadian Dollar
• Norwegian Krone
• Swiss Franc
• Danish Krone
• Swedish Krona
• Chinese Yuan Renminbi
• Emirati Dirham (United Arab Emirates)
• Saudi Arabian Riyal
• Hong Kong Dollar
• Kuwaiti Dinar
• Singapore Dollar
• Bermudian Dollar (if pegged to the USD)
• Quatari Riyal
• Japanese Yen
Minimum £100,000 product dependent.
Maximum £1,200,000 (refer if above £750,000).
Minimum 5 years.
Maximum 35 years.
We will consider remortgage applications where the applicant has been the registered owner for the past 6 months.
Your client can apply for a mortgage on a wholly repayment basis, wholly interest only basis or a mixture of the two.
BTL’s will be stressed on I/O even if the application is on a repayment basis, providing the applicant appears to have the means to support the higher monthly payment (monthly surplus and a good credit file/evidence maintained a repayment mortgage with their current lender).
Let to Buy
A new residential mortgage can be considered where the applicant wishes to retain their current property on a BTL basis.
We need to be satisfied that the existing mortgage will be converted to a permanent letting arrangement and we require:
Rental coverage of 125% of the mortgage commitment based on 5.5% or chosen product rate+ 2% (whichever is the higher of the two) for UK Basic Rate Tax Payer. Or for Higher Rate Tax Payers 145% at 5.5%.
Anticipated rental income must be confirmed and may be required to be evidenced by a letting agent.
Maximum Number of Properties
A maximum of 3 mortgaged BTL’s can be held across any number of lenders, maximum exposure £1,500,000. We do not accept portfolio landlords, which applies if an applicant holds 4 mortgaged BTL’s
No family members, multiple tenancies, holiday lets, House with Multiple Occupancies, company lets or student lets.
All subject to assured shorthold tenancy agreements. 12 months maximum term for a tenancy agreement.
Sale and Leaseback
Minimum Property Value
England and Wales.
Properties must be of traditional construction.
Timber framed properties may be considered if brick clad.
New build houses subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10) or Architect Certificates – maximum 75% LTV.
Purpose built and converted flats and maisonettes are acceptable (new builds not acceptable) up to 65% LTV and must be leasehold.
Flats/apartments more than 4 storeys –if above 4 storeys, they must be services by at least 1 lift. If above 15 storeys, referral to Underwriting required.
Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
Studio flats and ex local authority flats.
New build flats.
Flats above commercial property.