Changes enable foreign nationals and skilled migrants to source funding
Two lenders have announced significant changes to their mortgage criteria, aiming to improve access to housing finance for foreign nationals and expatriates.
GB Bank has updated its buy-to-let proposition, now offering loans to foreign nationals and expatriates who do not hold UK residency but have a UK bank account.
The new offering allows global investors to access up to £20 million in loans at up to 75% loan-to-value (LTV), regardless of whether they have UK income or own property in the country. First-time landlords are also eligible, with loans capped at £7.5 million.
The lender will consider a range of property types, including houses in multiple occupation (HMOs), multi-unit blocks (MUBs) with no restriction on bedrooms or units, and mixed-use properties. GB Bank said it will also support complex ownership structures such as overseas special purpose vehicles and trusts.
Applicants must meet a minimum interest coverage ratio of 130%. Pricing is determined case by case, and the new criteria are available to applicants from most countries, excluding those under international sanctions or on the FATF blacklist.
“We’re seeing increasing demand from international investors who recognise the strength and stability of the UK property market,” said Mike Says (pictured left), chief executive at GB Bank. “Our enhanced buy-to-let proposition reflects our commitment to providing accessible, agile and expert-led lending solutions, particularly on high value investments. By removing the UK residency barrier, we can say ‘yes’ to more complex cases that mainstream lenders would decline.”
Meanwhile, Buckinghamshire Building Society has launched a two-year fixed-rate mortgage at 6.35% for borrowers on a Skilled Worker visa.
The product is available for purchase and remortgage purposes, with loans up to 90% LTV and a maximum loan size of £750,000. This marks an increase from the lender’s previous 80% LTV limit for this borrower group.
To qualify, applicants must have lived and worked in the UK for at least two years and show that their deposit was saved independently. Gifted deposits are not accepted. The mortgage comes with a £999 product fee.
The new offering is part of the mutual’s manual underwriting approach, which allows for flexibility in supporting borrowers with specialist income or visa circumstances. It follows the lender’s recent decision to increase the maximum LTV on its Credit Restore range from 70% to 75%.
“We know there are many people contributing to the UK economy under the Skilled Worker visa scheme who are more than capable of sustaining homeownership, but have struggled to access competitive mortgage options, particularly at higher LTVs,” said Claire Askham (pictured right), head of mortgage sales at Buckinghamshire Building Society.
“At Bucks, we want to support those who don’t yet have indefinite leave to remain but have shown commitment and stability through sustained UK residency and employment. This product gives those individuals a fair opportunity to buy or remortgage their home, with the personal and manual underwriting approach we’re known for.”
Both announcements reflect a growing trend among lenders to expand access to home financing for non-resident and visa-holding borrowers, in response to increased demand and changing borrower demographics.
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