Vernon Building Society has launched a new expat buy-to-let (BTL) mortgage, aimed at British nationals working overseas who want to buy or keep property in England and Wales for rental.
The new 2-year discount product is set at 5.29%, a 2.31% reduction from the standard variable rate (SVR) of 7.60%.
The product comes with a £999 arrangement fee, allows borrowing up to 75% loan-to-value (LTV) and has a maximum loan size of £1m.
Affordability is checked at an expat interest coverage ratio (ICR) of 140%.
Borrowers can make overpayments of up to 25% without penalty, providing flexibility in how they manage their mortgage.
Vernon’s expat BTL is available to both limited companies and consumer landlords, and first-time landlords are also eligible.
Applicants must have a UK correspondence address, a UK bank account and earn at least £30,000 a year.
Brendan Crowshaw (pictured), head of mortgage and savings distribution at Vernon Building Society, said: “The expatriate property investment market is growing rapidly, yet expat BTL mortgages remain a specialist segment with limited options.
“Expatriate 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.”
