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Ipswich Building Society refreshes mortgage range for expats

Added: 18 July 2019

Ipswich Building Society refreshes mortgage range for expats

Now available to applicants paid in foreign currencies

Ipswich Building Society has updated its expat residential mortgage offering to include applications from British nationals living overseas who are paid in a foreign currency, as well as those paid in pound sterling (GBP).

The range includes both residential purchase and remortgage products, and is designed to appeal to applicants who need to retain property for UK-based family, or to return to on UK visits, and joins the Society’s existing expat buy-to-let range.

Mortgages are available on residential properties located throughout England and Wales, including new builds, and the Society will consider applications from expats currently residing in most countries across the world.*

Product information

The new range consists of the following products and is available to direct applicants, intermediaries based in the Society’s heartland area, and members of selected networks and clubs:

  • • 2-year fixed rate at 3.10% until 30 September 2021 (5.4% APRC*)
  • • 2-year discount rate at the Society’s Standard Variable Rate (currently 5.74%) minus 2.94%, giving a current pay rate of 2.80% for two years from the completion date (5.5% APRC*)
  • • 5-year fixed rate at 3.34% until 30 September 2024 (4.9% APRC*)

All products are available up to 80% Loan To Value (LTV) and have an application fee of £199, a completion fee of £800, a CHAPS fee of £35, and a tiered valuation fee based on property value applies. During the product period, the Society offers fee-free overpayments up to 50% of the original loan amount. For overpayments in excess of 50% of the original loan amount, or early redemption, an Early Repayment Charge (ERC) applies**. For overpayments this charge is calculated on the overpayment amount that exceeds the 50% allowance, and for early redemption is calculated on the original loan amount.

Criteria

Loans are available from £75,000 to £500,000 with a maximum term of 40 years. Applicants must be employed by a recognised multinational firm and have a minimum income of £40,000 GBP or equivalent paid in any of the following ten currencies: Euro, Swiss Franc, Norwegian Krone, US Dollar, Canadian Dollar, Singapore Dollar, Hong Kong Dollar, UAE Dirham, Kuwaiti Dinar, Qatari Riyal.

Applicants will benefit from the Society’s expert, manual underwriting process, particularly significant for expats who have worked overseas for some time and may have a minimal UK credit profile. Whereas an automated provider applying automatic checks may be unable to lend, we are better placed to consider the individual circumstances behind each application, using a common sense approach to this and other matters arising from more complex overseas applications.

Affordability assessments will take into consideration employed applicants as well as retired borrowers, with 100% of pension and 75% of investment incomes used when calculating affordability.

Commenting on the new expat mortgage range, Richard Norrington said: “Moving overseas can be an exciting adventure, whether it’s a lifestyle choice or through career progression. Whilst we recognise that relocating can often be a long-term arrangement, we also know that many expats wish to retain a tangible link to home, and investing in a UK property can help satisfy this wish and also provide a base for their family. We’re delighted to be able to extend our expat offering to now include residential deals for those paid in a foreign currency, in order to create wider choices for those currently living abroad.

“We’re aware that as many as a quarter*** of Brits living overseas are retirees, and therefore it is important to us to recognise pensions and investment incomes within the affordability assessment process for these products too.”


Notes to editor

*This excludes countries sanctioned by the United Nations.

**For the 2-year fixed rate deal the ERC is at a rate of 3%, for the 2-year discount rate deal the ERC rate is reduced to 1%, and for the 5-year fixed rate deal the ERC is at a rate of 5%.

***According to Inter Nations 2018 Expat Report: https://cms-internationsgmbh.netdna-ssl.com/cdn/file/2018-09/Expat-Insider-2018_The-InterNations-Survey.pdf

Your home may be repossessed if you do not keep up repayments on your mortgage.