Mortgages  

Saffron broadens expat buy-to-let offerings

Saffron broadens expat buy-to-let offerings

Saffron for Intermediaries has updated its range of expat buy-to-let mortgages to provide more choice for landlords living overseas.

The latest criteria offered by Saffron Building Society’s intermediary lending channel includes a 55 per cent loan-to-value (LTV) band and a fixed rate now available up to 75 per cent.  

The new three-year discounted rate is available at 3.39 per cent to 55 per cent LTV and the five-year fixed rate is available at 4.07 per cent to 55 per cent LTV and 4.57 per cent to 75 per cent LTV - both are available for purchase and remortgage.

The products are available to expat landlords in any global location and are available to first-time buyers with no requirement of a UK mortgage history or minimum income.

Colin Field, chief executive at Saffron Building Society said: "With high numbers of UK nationals living overseas and the launch of Saffron’s enhanced expat buy-to-let offerings there has never been a better opportunity for brokers to introduce this product range to existing and would be customers residing abroad."

The changes are an expansion of Saffron’s ‘special situation mortgages’ which also provide for self build, custom build, buy-to-let light refurbishment and contractors and the self employed.

Shaun Church, director at Private Finance, said the expat mortgage market has been in desperate need of new entrants and improved product availability for some time now, so it was positive to see a regional building society bringing out innovative products in this sector.

He said: "Following the EU Mortgage Credit Directive, it has become increasingly difficult for expats to find a mortgage and having income in a foreign currency – particularly from a more ‘unusual’ destination – poses problems for many lenders, so it is reassuring to see Saffron will accept landlords from any country in the world."

Mr Church added Saffron seemed open in terms of who can apply for the product, with no minimum income required and first-time buyers welcome, but said it would be interesting to see what the lender's requirements were in terms of proof of income.

He explained: "At Private Finance, we receive a large number of enquiries from expats who are struggling to find a suitable mortgage deal - though product innovation certainly helps.

"Unfortunately this is currently few and far between, and unless there are significant regulatory changes in the future it is likely this group will continue to experience difficulties when financing a property purchase."

rachel.addison@ft.com