The specialist holiday let market is becoming increasingly attractive to ex-pat investors – and another mortgage lender has entered the sector as a result.
Suffolk Building Society has launched a new standalone product to bolster its existing expat residential and expat buy to let offering.
The new product is available up to 80 per cent Loan To Value with a minimum loan of £75,000, a maximum loan of £750,000 and a minimum property value of £100,000 for properties in England and Wales.
Expat first time buyers and non-owner occupiers will be considered on an individual basis and for joint applications, although at least one party must be a UK national and where the second applicant is a non UK national.
This includes one of the applicants having a minimum income of £40,000; being employed by a reputable employer with a verifiable income; and the purchase deposit must be sourced from an account held in the applicant’s name.
Most countries and currencies are eligible but the deposit must be held either in the UK or the country that the main applicant is residing.
Owners may occupy the mortgaged holiday let property for personal use for up to 60 days per year, and applications will be assessed on an average of low, mid and high season rental yield and this will need to be verified by an independent lettings agent, rather than Airbnb.
“As expat and holiday let specialists, we were naturally keen to respond to the demand, both from intermediaries and direct customers, for what is currently an underserved section of the market” ays a spokeswoman for the building society.
“We understand that increasing numbers of UK nationals are looking to invest in the UK holiday rental market, as the public rediscovers the beauty of British holidays and the pandemic continues to make travel abroad tricky.
“With 60 days personal use, this also provides a great base for those expats returning to the UK for longer holidays or to visit family, meaning they have a property of their own to stay in, alongside the rental income they’re earning too.”
