Criteria for your Expat Residential cases

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.

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£37,500 per application.

Please note that when calculating income in a foreign currency, 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 minus 20%

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.

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.

CCJs/Defaults are not acceptable over 80% LTV.

Up to 80% LTV: Mortgage, loan, HP arrears and missed payments => 3 years prior to application: Status 1s and 2s 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 2s are acceptable.

Credit Card, mail order, utility commitments <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.

Above 80% LTV: Mortgage, loan, HP arrears and missed payments are not acceptable.

Credit card, mail order, utility commitments: A maximum of 3 status 2s are acceptable if less than £100.

No other adverse entries within the last 3 years must show on the credit file.

Applicants in probationary period are acceptable, providing they are in like-for-like employment with no gap in employment.

LTV >80%: The applicant must have been in their current business for a minimum of 3 years.

LTV <80%: The applicant must have been in their current business for a minimum of 1 year with a further 2 years’ experience in the same field.

Directors with a shareholding of less than 25% will be classified as employed. We accept salary in dividend as income. If above 25%, we classify as self-employed.

LTV >80%: The applicant must have been contracting for a minimum of 3 years.

LTV <80%: The applicant must have been contracting for a minimum of 1 year with a further 2 years’ experience in the same field.

Zero-hour contracts accepted – please refer.

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.

Self-employed applicants are acceptable subject to the ability to provide 3 years’ trading history evidenced though financial accounts and an accountant’s reference from one of the following acceptable accountancy firms;

• Baker Tilly International
• BDO
• Crowe Horwath International
• Deloitte
• Ernst & Young (EY)
• Grant Thornton International
• HLB International
• KPMG International
• Moore Stephens International
• PKF International
• PricewaterhouseCoopers (PwC)
• RSM International
• UHY International

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 consider a percentage of any payments received in respect of investment, dividend or rental income if evidenced by accounts or SA302’s and SA100’s.

100% of maintenance can be used if court ordered, or payments can be evidenced on the most recent 6 month’s 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 minus 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 US Dollar)
• Qatari Riyal
• Japanese Yen
• New Zealand Dollar

We’re unable to accept any new applications from your clients residing in the countries listed on our Expat Country Exclusions List (PDF).

If you have an expat client who doesn’t reside in one of the countries listed, we’ll consider your application.

Minimum: £30,000
Maximum: £750,000

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.

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 an interest coverage ratio of 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 payers, 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.

£100,000

The property must be for the residential use of the applicant(s) and/or their family and be 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).

Holiday homes.

Prefabricated properties.

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.

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.

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 England or Wales 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.

• 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.