The Mansfield Building Society has launched two new expat consumer buy-to-let products for people who live and work abroad but want to let out their UK residential property whilst overseas.
Both products are available to 70% LTV with a maximum loan size of £500k, and are offered at a rental coverage ratio of 145% at 5.5% or 2% above the pay rate, whichever is higher.
The two-year discounted variable rate products both come with a free basic valuation and are currently priced at 2.95% with a completion fee of 1.25%, or 3.69% with no completion fee.
Expat borrowers must live in a Financial Action Task Force (FATF) member country and have done so for less than five years. Hong Kong and Gulf Corporation Council Member countries are also acceptable.
The mutual individually underwrites all mortgages on a case-by-case basis.
Paul Lewis, national development manager at the Mansfield, said: “There are a good number of expat clients who, whilst working overseas, want to retain their main residence back in the UK and would prefer to rent it out rather than sell it. These are not ‘accidental landlords’ – they are simply looking to maintain a bolt-hole in the UK whilst taking advantage of strong tenant demand in the meantime.
“The introduction of the new consumer buy-to-let to the Society’s existing expat proposition strengthens the offering for overseas clients.
“We now offer a wide range of buy-to-let products including consumer, FCA-regulated Family, and Business buy-to-let products and we’ll continue to work with advisers to ensure the needs of their landlord borrowers are met. We would urge any advisers active in this sector, or those seeking to grow their buy-to-let advice proposition, to contact us to see how we can support them.”