Suffolk Building Society has rolled out a series of criteria changes, which it says will help brokers place more complex cases for landlords and expat clients.
The mutual says for expats and non-UK nationals, it will now accept applications from first-time buyer expat landlords who are working and living abroad and who have not owned a property before, but who wish to purchase a rental property in the UK.
It also will no longer require returning expats to spend a set amount of time in the UK before applying for a mortgage.
The firm says that it’s common for lenders to require anything up to two years “on home soil”, but this change allows expats to apply as soon as they return. The move applies to both employed and retired applicants.
The business adds that non-UK nationals will also be accepted on a joint application where one applicant is a UK national.
This means that the non-UK partner can now be named on the mortgage. However, the mutual points out that brokers should be aware that affordability will be based solely on the UK national applicant’s income only and they will be required to meet all relevant criteria.
An example of an expat loan, is a BTL two-year discount rate, for purchase or remortgage, at 4.75% (standard variable rate-minus 2.69%), at up to 80% loan to value. This product carries a £199 application fee and a £1,499 completion fee.
The company says for UK landlords, it will now consider applications for first-time buyer BTL properties in England and Wales. Full BTL criteria will be applied, including interest cover ratio and minimum income. The firm will also run a background affordability assessment.
An example of a first-time landlord loan, is a BTL two-year discount rate, for purchase or remortgage, at 4.49% (standard variable rate-minus 2.95%) at up to 80% LTV. This product carries a £199 application fee and a £999 completion fee.
It adds that UK landlords who want to purchase or remortgage their residential property will now be considered regardless of how many BTL properties they have in the background, as long as the portfolio is self-financing.
Previously, the society had a limit of 10 properties in the background, but this measure has now been removed.
An example of a standard residential loan is, a BTL residential three-year discount rate, capital and interest, for purchase or remortgage, at 3.89% (standard variable rate-minus 3.55%), at up to 80% LTV. This product carries a £199 application fee and a £500 completion fee.
Suffolk Building Society head of intermediary relations Charlotte Grimshaw says: “We know our niches extremely well and have a very good understanding of the issues facing brokers in these markets at the moment.”
