Buckinghamshire Building Society has opened its holiday let products to expats, with offers available for purchase or remortgage to first-time buyers and first-time landlords with a maximum loan-to-value of 75%.
The mutual says key details include a three-year discounted rate, currently at 4.89%, with a minimum loan of £50,000 and a maximum loan of £500,000.
It adds that applications will be accepted from individuals or limited companies and the property must qualify as a furnished holiday let under the HMRC definition. The property must be available to let for 140 or more days a year. Standard credit criteria, early repayment charges and fees apply.
Properties must be located in England or Wales and the business will only lend on properties that are by the coast and in national parks areas.
Applicants must have a minimum sterling equivalent income of £30,000. The product is available up to a maximum of three UK buy-to-let mortgaged properties.
The firm will not accept applications from expats based in Europe and Hong Kong.
The loan does not apply to properties based on holiday parks and complexes, B&B, Airbnb, flats, leasehold properties and properties that have an occupancy restriction.
The lender says a representative example of the product is a mortgage loan of £211,000 payable over 10 years on an interest-only basis, initially on a discount of 2.00% from its BTL standard variable rate, currently at 6.89%, giving a pay rate of 4.89% for 36 months. Then, the firm’s BTL standard variable rate, currently at 6.89%, for the remaining period would require 36 payments of £859.83 and 84 payments of £1,211.49.
It adds that decisions in principle are valid for 30 days. Decisions in principle not converted to full mortgage applications within this period will need to be resubmitted and a product selected from the current range available at that time.
The mutual says its current decision in principle timeframe, from submission to decision, is three working days.