The deal is capped at a £500,000 loan, and requires a minimum income of £40,000.
In addition, the package allows for a maximum of three buy-to-let properties, and rental income must exceed mortgage payments by a ratio of 145%. There is an application fee of £299, followed by a £1,999 completion fee and a valuation fee based on property price.
Expat BTL mortgages have seen something of a revival according to Moneyfacts. The number of expat buy-to-let products dropped from 137 in October 2015 to 107 in October 2016, but subsequently jumped up to 187.
Richard Norrington, CEO at Ipswich Building Society, said: “Our new expat mortgage product has been designed to appeal to employed Britons living abroad looking to purchase or remortgage a residential property in the UK. This new product is a further extension of our commitment to supporting accessibility in the mortgage marketplace and our personal approach to underwriting will allow us to offer choice while retaining a diligent approach to lending.”
Shaun Church, director at Private Finance, a mortgage broker, said: “Many expats look to invest in buy-to-let property while living overseas as a way of generating income. However, in recent years expat mortgages for landlords have been harder to find and are subject to tough regulation.”
“A five year fixed rate of 3.99% is very competitive in these circumstances,” Church continued, “and the product is relatively inclusive, covering customers living and working in all non-sanctioned countries (including Australia, which can pose particular problems for expat borrowers).”
Elaborating on future plans, Joanne Leek, brand and CSR manager at Ipswich Building Society, said that they are “constantly innovating and reviewing our mortgage offer to ensure we are responding to the demands of the mortgage market, whilst offering variety. We will continue to seek opportunities to use our underwriting expertise to assist borrowers who may be overlooked by high-street lenders.”