Saffron enhances expat range; LendInvest adds exclusive five-year fix – buy-to-let round-up

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  • 08/08/2018
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Saffron enhances expat range; LendInvest adds exclusive five-year fix – buy-to-let round-up
Saffron Building Society has overhauled its expat buy-to-let mortgage range, while LendInvest has added an exclusive five-year fixed deal.

 

Saffron has introduced a 55% LTV band and an increased maximum LTV of 75%.

These changes aim to help landlords to purchase or remortgage a buy-to-let property in the UK while living abroad.

There is no restriction on countries, which means that expat landlords can live in any location around the world including Australia, New Zealand and the USA.

On top of this, the range will be available to first-time buyers and no UK mortgage history or minimum income will be required.

With 1.3 million people born in the UK living in other EU countries, the opportunity for brokers to grow business in this expat market is significant, the lender said.

Almost 33% of all British-born emigrants living outside the UK live in Australia or New Zealand, 28% live in the US or Canada compared to 26% in the EU.

Colin Field, CEO 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.”

Fixed rates

 

As part of the changes, Saffron has also launched new three-year discounted and five-year fixed rates available for purchase and remortgage.

The three-year discounted rate is available at 3.39% to 55% LTV, whilst the five-year fixes start from 4.07% at 55% LTV and 4.57% up to 75% LTV.

Both rates have a 40 year term, with a loan available from the minimum of £30,000 to a maximum of £1m.

Anita Arch, head of mortgage sales at Saffron Building Society, told Mortgage Solutions: “The world is becoming a much smaller place with increasing numbers considering a move abroad but still wanting strong investment opportunities back in the UK.

“Advancements in technology for instance make it so much easier to manage investments back home when living overseas. Becoming a landlord or increasing your UK rental portfolio has never been easier. Our latest range of ExPat Buy-To-Let Mortgages have no country restrictions and a host of new features. We believe this revamped mortgage offering, like many of our Special Situation Mortgages, will grow further in popularity as brokers and their customers look for more personalised and relevant mortgage solutions.”

 

The Buy to Let Club deal

 

LendInvest has launched an exclusive five-year fixed rate product for intermediaries through the Buy to Let Club.

The five-year fixed rate of 2.75% is available up to 75% LTV through the distributor, with a product fee of 4.99% which can be added to the loan.

Affordability is calculated at an interest cover ratio (ICR) of 140% for higher rate taxpayers; 125% for limited companies and basic rate taxpayers, at an assessment rate of 4.19% against the total gross loan amount.

The mortgage is available on loans up to £500,000 for purchase and remortgages, and suitable for standard property types and HMOs.

The lender said it was designed for landlords who wish to utilise a higher fee, lower interest rate loan and allow borrowers to leverage their cash flow.

 

LendInvest sales director Ian Boden said he was pleased to be working with Buy to Let Club on this product.

“We believe that the market is clearly shifting towards professional property investors who are seeking a lender that understands the dynamics of their business along with their need to manage cash flow,” he said.

Buy to Let Club managing director Ying Tan welcomed the lender’s innovation in the market.

“LendInvest has been a welcome addition to the market since its launch into buy-to-let loans last November,” he said.

 

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