Mansfield launches buy-to-let for expats

Mansfield launches buy-to-let for expats

Mansfield Building Society has launched a buy-to-let mortgage product with no completion fee, exclusively for expat borrowers.

The two-year discounted rate product is offered to 70 per cent loan-to-value (LTV) at a current rate of 3.69 per cent (2.06 per cent less than the SVR). 

The new product is in addition to The Mansfield's other two-year discounted expat buy-to-let product, which is currently offered at 2.95 per cent with a 1.25 per cent completion fee.

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Both expat buy-to-let mortgage products come with a £199 application fee on loans between £100,000 and £500,000. 

Rental income must meet The Mansfield's standard interest coverage ratio of 125 per cent at 5 per cent or 2 per cent above pay rate, whichever is greater.

Prospective borrowers must have a minimum income of £40,000 (or equivalent) and be both a current UK national and a previous UK owner-occupier, residing in a Financial Action Taskforce (FATF) member country for less than five years. 

Residents of both Australia and China are currently ineligible, however member states of the Gulf Corporation Council, and Hong Kong residents are acceptable.

Paul Lewis, national development manager at the Mansfield, said: "Many UK nationals are now working or living overseas and, whatever impact Brexit may have, there will continue to be demand from expat’s for UK investment property.

"Our latest expat buy-to-let product should certainly interest expats and their advisers, given that it comes with a number of attractive features, most notably the absence of a completion fee."

David Hollingworth, associate director of communications at mortgage broker London & Country, said: "The mutual sector is increasingly offering a diverse range of product options that are often underserved by the bigger banks and high street brands. 

"Adding more specialist products to serve the needs of a broader range of property investor sits well with Mansfield’s ability to offer individual assessment of cases. 

"Being able to offer a specialist range can help to widen brand awareness in the broker market and Mansfield’s addition of a product version without a completion fee shows its willingness to offer a range of options that will better meet a broader variety of expat requirements."