Suffolk Building Society has announced the launch of new 90% loan-to-value (LTV) residential mortgage products aimed at British expats, as it responds to growing demand for higher LTV options among those seeking to retain or acquire a home in the UK while living abroad.
The mutual has added a suite of 90% LTV expat products to its offering, including a two-year discount, a two-year fixed and a five-year fixed rate.
In addition, the Society has cut rates on its existing 80% LTV two-year fixed expat range by 10 basis points.
The move is designed to support UK nationals working overseas who wish to purchase or remortgage property in England or Wales with a smaller deposit, giving them greater financial flexibility.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “Many people living and working abroad wish to purchase or retain property in England or Wales, either as a home for visits back to the UK or accommodation for family who wish to remain here.
“By offering a higher LTV option we’re allowing expats to buy a property sooner (less deposit) and facilitating those wanting to put down a smaller deposit and retain funds for home improvements or other investments. Having a home in the UK is a requirement for many expats.”
The new 90% LTV expat residential products include a two-year discount capital and interest mortgage at 5.79%, equivalent to 2.35% below the Society’s standard variable rate, a two-year fixed at 5.95%, and a five-year fixed at 5.79%. All three carry a maximum loan size of £650,000.
Meanwhile, the 80% LTV two-year fixed capital and interest product has been reduced to 5.59% (down from 5.69%) and the interest-only equivalent to 5.79% (down from 5.89%). These products come with higher maximum loan limits of £2m and £1m respectively.
The Society will accept income in 16 currencies and multi-currency applications, and will lend to British nationals living in a wide range of countries. Applicants must meet criteria and affordability requirements, but joint applications involving a British and non-British national are also considered. There is no upper age limit for borrowing, and Joint Borrower Sole Proprietor (JBSP) structures are available on expat loans.
Grimshaw added: “Our expat lending is growing year on year – this is undoubtedly down to our flexible approach to expats, and our expert sales team and underwriters who understand the nuances of expat lending. We’ve adapted our products and criteria to suit the needs of expats; the launch into 90% LTV is on the back of broker feedback.”
