Use our handy tool to find out more about our expat residential criteria including which currencies we’ll accept and who can live in the UK property. If you’d prefer a printed version, you can download a PDF copy of our Expat Residential criteria here.
Last updated 10 June 2021.
We are unable to accept any new applications from any customer residing in the European Economic Area (EEA) which includes the European Union (EU) countries listed below along with Iceland, Liechtenstein and Norway.
Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
We will update this information if there is any change to our policy due to the ongoing financial service sector agreement discussions.
The Stamp Duty incentive has been extended. This means that your clients now have until 30 June 2021 to complete their purchase of a property up to the value of £500,000 without paying Stamp Duty.
To smooth the transition back to normal thresholds, the nil rate band will then apply to properties up to the value of £250,000 until 30 September 2021, before returning to £125,000 on 1 October 2021.
Your client needs to ensure there is sufficient time for their conveyancer to complete all the legal work required to enable their mortgage application to complete before the incentive is withdrawn, or the thresholds change in line with the dates above.
It is in their own interest to instruct their conveyancer at the earliest opportunity so that they are in the best position to meet these deadlines. Please note that any costs incurred for starting the legal process early will need to be met by your client if the case does not progress to completion.
It is important to note that if their application does not complete by the dates outlined above, they will be liable to pay any Stamp Duty related to their purchase.
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.
Date of Birth State Retirement Age From 6 April 1950 – 5 June 1953 63 From 6 June 1953 – 5 September 1953 64 From 6 September 1953 – 5 October 1954 65 From 6 October 1954 – 5 March 1961 66 From 6 March 1961 – 5 April 1978 67 From 6 April 1978 onwards 68
Maximum Number of Applicants
£37,500 per application.
For sole applications – applicant must be a UK citizen.
For joint applications – one of the applicants must be a UK citizen with the other applicant having settled status or permanent right to reside in the UK. The salaried applicant must be the UK citizen and contributing at least 50% of the total earnings in respect of the minimum income requirements.
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.
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.
Applicants’ own deposit or gift from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild) is acceptable. Evidence of the source of deposit is required.
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).
For applicants on fixed term contracts of less than 6 months, the minimum period of employment with the same employer is 6 months. For those on contracts of 6 12 months or more 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.
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.
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
• Hong Kong
• Korea (South)
• New Zealand
• Saudi Arabia
Minimum 5 years (product dependent).
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.
Interest Only Repayment Vehicle
Sale of Mortgaged Security/Investments/Sale of other property/Endowment.
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:
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.
Right to Buy
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.
Minimum Property Value
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/ICW (International Construction Warranties)/AHCI Ltd or Professional Consultants Certificates – maximum 80% LTV.
Purpose built flats/maisonettes are acceptable (new builds not acceptable). Must be up to 60% LTV and leasehold.
Flats/apartments more than 4 storeys –if above 4 storeys, they must be serviced by at least 1 lift. Flats above 6 storeys are not acceptable.
HMOs, self-builds, properties held in Trust, present or former hotels/guest houses/B&B’s, commercial properties (even if applicants intend to convert back to residential).
Studio flats and ex local authority flats/maisonettes.
New build flats.
Flats above commercial property.
Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
Any property where an EWS1 form for wall cladding is required.
Service Agent Agreement
Service Agent Agreement
A Service Agent Agreement will need to be completed by your client before the expat mortgage is completed. This will confirm the name and address of somebody in the UK who will act as the Service Agent and who the Society can serve papers to should the borrower fall into arrears and possession proceedings need to commence. For more information on what is required, please visit Expat Residential FAQs page.
Reasons for Additional Borrowing
• Home improvements
• Debt consolidation (maximum £30,000)
• Gift to family member
• Purchase of an investment or second home
Please note evidence would need to be submitted to satisfy the above.