Vernon Building Society has launched an expat buy-to-let mortgage for British nationals living overseas who want to purchase or retain rental property in England or Wales.
The two-year variable rate deal is priced at 5.29%, offering a 2.31 percentage point discount from Vernon’s standard variable rate, which is currently 7.6%.
It has a £999 arrangement fee and is available up to 75% loan-to-value on up to £1 million.
Affordability will be assessed at an interest coverage ratio of 140%.
The product is available to limited company and consumer buy-to-let borrowers and is open to first-time landlords.
Borrowers must be British nationals with a UK correspondence address, a UK bank account and a minimum income of £30,000.
The mutual said the launch reflects rising demand in a specialist part of the market where dedicated expat buy-to-let options remain limited.
Vernon Building Society head of mortgage and savings distribution Brendan Crowshaw says: “The expat property investment market is growing rapidly, yet expat BTL mortgages remain a specialist segment with limited options.
“Expat landlords face real barriers when investing in UK property because mainstream lenders simply can’t accommodate their circumstances.
“The Vernon’s new Expat Buy to Let product brings fresh choice, specialist expertise and the kind of personal underwriting and flexibility that matters when circumstances are complex.”
The society added that its manual underwriting approach allows for case-by-case decisions, which it says is particularly valuable for borrowers with complex income or residency profiles.
