Expat Residential Criteria

Normally the loan must be repaid before the oldest applicant’s state retirement age detailed below or applicant’s stated intended retirement age, whichever is lower.

Please note for existing partners, refer cases for into retirement and retired.

2

£37,500 per application.

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.

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.

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.

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.

We capture gross annual income and net monthly income details. In addition we may also consider; 60% of regular overtime, bonus or commission (avg. of these over the last 2 years P60).

We assess the applicant’s income based on the most recent years’ income (or salary and dividends in the case of shareholding directors).

We require 2 years most recent accounts (covering 3 years trading) or 1 years trading account and 2 years evidence of income if previously employed in the same field.

If fluctuations are shown within the accounts we will work on an average of the 3 years or most recent year if lower than average (if there is >20% fluctuation, please refer to Underwriting).

100% private or state pension and income generated from a trust fund.

The Society may also take into account a percentage of any payments received in respect of investment, dividend or rental income if evidenced by accounts or SA302’sand SA100’s.
100% of maintenance can be used if court ordered or payments can be evidenced on the most recent 6 month bank statements.

100% of benefits which are subject to a lifetime award.

100% child benefit (for children up to age 14).

50% working and child tax credits (for children up to age 14).

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%.

Acceptable Currencies:
• US Dollar
• Euro
• 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

Evidence of the source of deposit is required.

Applicants’ own deposit or gift from an immediate family member is acceptable.

Minimum £30,000.

Maximum £1,200,000 (refer if above £750,000).

Minimum 2 years (product dependant).

Maximum 35 years.

We will consider remortgage applications where the applicant has been the registered owner for the past 6 months.

Repayment, interest only and part and part applications accepted dependent on the selected product.

Sale of Mortgaged Security/Investments/Sale of other property/Endowment.

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:

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%. Anticipated rental income must be confirmed and may be required to be evidenced by a letting agent.

Not accepted. Properties that do not have any pre-emption remaining will be considered.

All family members (i.e. Wife/Husband/Partner/Children/Parents) residing in the property is acceptable and they do not have to be named on the mortgage, but with the requirement to confirm that no rent is being paid. Family members who do not form part of the family unit cannot reside in the property unless they are named on the mortgage.

£150,000

The property must be for the residential use of the applicant(s) and/or their family and be located in 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)/Buildzone/Zurich or Professional Consultants Certificates – maximum 80% LTV.

Purpose built and converted flats and maisonettes are acceptable (new builds not acceptable) up to 75% LTV and must be leasehold.

Flats/apartments more than 4 storeys –if above 4 storeys, they must be serviced 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.

Prefabricated properties.

Holiday homes.

Studio flats and ex local authority flats.

New build flats.

Flats above commercial property.

Both freehold and leasehold are acceptable for houses.

Freehold flats/maisonettes are not acceptable – leasehold only.

Flying freeholds – refer.

For leasehold, there must be a minimum of 85 years unexpired lease at the start of the mortgage and 55 years remaining at the end.