Suffolk Building Society has announced a relaxation of its lending criteria for three key borrower groups – foreign nationals, expats, and those planning to downsize.
The society has softened its stance on applications from foreign nationals by reducing the minimum UK employment requirement from two years to just 12 months. Applicants will also only need 12 months remaining on their visa rather than two years under the previous rules. The change applies to holders of Skilled Worker, Health and Care Worker, and Global Talent visas.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “As a building society that specialises in expat and complex income cases, it’s only natural that, as the foreign national market has grown, we’re seeing more enquiries of this nature.
“We’re particularly pleased to be able to give brokers clarity on qualifying visas, as well as help those in health and care work to get onto the UK property ladder.”
Alongside the foreign national criteria updates, the society has reduced the minimum income threshold for expat buy-to-let borrowers from £40,000 to £25,000. The minimum age for residential expat applicants has also been lowered from 21 to 18, helping younger British citizens based overseas maintain or establish a foothold in the UK property market.
In a further change designed to appeal to borrowers approaching the end of an interest-only term, Suffolk is increasing the maximum loan to value for downsizers from 50% to 70%. The lender acknowledges the role equity release can play across different life stages and has expanded acceptable repayment strategies to include endowments, ISAs, pension lump sums and the sale of background properties.
While the new policy is not age-specific, the higher LTV limit is expected to be particularly helpful to older borrowers looking to use the proceeds of a future property sale to repay their mortgage.
“These criteria changes reflect our ongoing commitment to inclusivity, innovation, and understanding the evolving needs of today’s borrowers,” Grimshaw said.
