Browse our residential ex-pat lending criteria
Residential ex-pat lending criteria
A
We can assess affordability using the below 20 currencies:
- US Dollar
- Euro
- Canadian Dollar
- Norwegian Krone
- Swiss Franc
- Danish Krone
- Swedish Krona
- Chinese Yuan Renminbi
- Emirati Dirham
- Saudi Arabian Riyal
- Hong Kong Dollar
- Singapore Dollar
- Qatari Riyal
- Japanese Yen
- New Zealand Dollar
- Australian Dollar
- Bahraini Dinar
- Oman Rial
- Bermudian Dollar (if pegged as US Dollar)
No minimum income required.
Applications are capped at 5.0 loan to income, once converted to GBP using our currency conversion calculations.
We will not take a % haircut, however we will calculate affordability based on actual income/expenditure (net).
Applicants that live abroad and have a UK based self-employed business, this income will be excluded from the affordability assessment.
Foreign Income that is from foreign pension will be excluded from the affordability assessment.
Arrears on any loan, mortgage, or credit agreement within 3 years of the application, may be considered where status 1’s or 2’s have been reported.
C
For Fixed-Term Contractors who are employed and taxed at source, the below criteria applies;
- They must have a minimum of 12-months contractor history with no more than a 2 month break within the latest 12 months
D
Savings: For deposits above £5,000, a minimum of 2 months statements showing funds in GBP in a UK account is required.
E
Excluding applicants previously within full time education, all employed applicants must be in permanent full or part-time employment, and continuously employed for the last 6 months, including probationary period, if appropriate
A person who holds British citizenship and resides outside the UK, often for work, retirement, or personal reasons. They retain ties to the UK, such as property ownership, financial interests, or family connections.
- British citizen (includes dual nationals)
- May be employed or Self Employed by a UK or foreign company
- May be receiving a UK pension (annuity not investment/SIPPS)
- Applicants that live abroad and have a UK based self-employed business, this income can be included subject 2 years average (inc 120% cap) and projections are not acceptable.
- May be classified as non-resident for UK tax purposes, depending on time spent in the UK and ties to the country
- Must have a UK bank account
- UK credit file “footprint” required.
- Applicants who are party to the application, that reside in the UK and are self-employed with a UK-based business are acceptable, subject to the standard self-employed lending criteria.
I
All income and expenditure must be included in the local currency on the decision in principle and application form, not in GBP conversion.
Applicants who are party to the application, that reside in the UK and are self-employed with a UK-based business are acceptable, subject to the standard self-employed lending criteria.
Applicants that live abroad and have a UK based self-employed business, this income can be included subject 2 years average (inc 120% cap) and projections are not acceptable.
Foreign Income that is from foreign pension will be excluded from the affordability assessment.
Income from Self Employment outside of the UK is excluded.
May be receiving a UK pension (annuity not investment/SIPPS).
Acceptable income streams employed and UK self-employment subject to the average of 2 years and 120% cap.
J
We can accept applications where applicants 1 and 2 earn income in different acceptable currencies and/or reside in different countries.
- For ExPat JBSP applications, these can consider subject to, direct family members
only and inclusive of employed and UK self-employed income - For ExPat applications, the ExPat borrowers are required to provide a Service Agent
Agreement with a UK-based firm of solicitors appointed to accept legal service on behalf of the expat borrower, conditioned at offer.
L
There is a minimum loan amount of £50,000 for new mortgages. Lending above £1,500,000 can be considered on a case-by-case basis.
The maximum loan amounts are:
- Up to 80% LTV - £1,500,000;
- Up to 85% LTV - £1,000,000; and
- Up to 90% LTV - £750,000.
The above LTVs are subject to product availability.
M
All applicants must be aged 21-75 years of age.
Arrears on any loan, mortgage, or credit agreement within 3 years of the application, may be considered where status 1’s or 2’s have been reported.
N
The maximum number of applicants per application is four.
O
Family members that are not named on the mortgage can occupy the property as long as there is no tenancy in place, and a consent to mortgage can be obtained at offer stage. Acceptable occupying family members are defined as a spouse, common-law partner, parent, grand-parent (including step-parents), siblings and adult children.
The Society will permit short term lets to non-family members (APT agreements are not permitted). Applicants must confirm their intentions to retain for own use and any income generated must be excluded from the affordability assessment.
R
Applications can be accepted on either a repayment or interest only basis.
Pure interest only is available up to 70% LTV when using sale of the subject property as the repayment strategy (for further details on equity requirements and other repayment strategies that can be considered please see our standard interest only criteria)
S
Applicants who already hold a mortgaged property either in the UK or overseas, will be subject to our second property affordability calculations.
The Society will permit short term lets to non-family members (APT agreements are not permitted). Applicants must confirm their intentions to retain for own use and any income generated must be excluded from the affordability assessment.
Income derived from overseas self-employment may be considered where the applicant operates a business outside the UK and the income can be satisfactorily verified.
Eligibility requirements
Applicants must:
- Demonstrate a minimum of two years' continuous trading history.
- Provide satisfactory evidence of income and business performance for the latest two years.
- Reside in a country included within the Society's accepted FATF-approved country list.
- Satisfy all customer due diligence, verification and underwriting requirements.
Acceptable Evidence
The following documentation is a mandatory requirement:
- Latest two years' financial accounts.
- Relevant local tax returns, tax assessments or equivalent taxation evidence applicable within the country of residence.
- Accountant's reference confirming the nature of the business, trading status and income.
Accountant Verification
Financial accounts must be prepared, audited or verified by an accountant or accountancy practice that is a member firm of one of the following international accountancy networks:
- Baker Tilly International
- BDO
- Crowe
- Deloitte
- EY
- Forvis Mazars
- Grant Thornton
- HLB International
- KPMG
- Moore Stephens
- PKF
- PwC
- RSM
- UHY International
Accounts prepared by firms that are not members of the organisations listed above may only be accepted with prior approval from the Lending Committee (LCOM).
Translation Requirements
Where financial accounts, tax returns or supporting documentation are not produced in English, certified translations must be obtained from an independent translation service acceptable to the Society.
The translation must include confirmation that it is a true and accurate translation of the original document, together with details of the translator or translation company. Both the original documents and translated versions must be retained on file.
Underwriters retain discretion to request additional verification where concerns exist regarding document authenticity, jurisdictional risk, accounting standards or translation quality.
Income Assessment
The following income assessment methodology will apply:
- Assessable income will be based on the average of the latest two years' verified income.
- Income projections or anticipated future earnings will not be accepted.
- The Society's standard maximum annual income increase cap of 120% will apply.
- The standard affordability assessment and policy rules will apply.
- Foreign currency income will be converted in accordance with the Society's established foreign currency conversion methodology.
