91¿´Æ¬

For intermediaries placing BTL loans for foreign nationals and expats, the UK lending market can often feel limited. Historically, most products have been built with UK-based borrowers in mind and then adapted , often unflexible for those living overseas. This can result in strict UK credit history requirements, constraints around corporate structures, and limitations on the types of properties that can be financed.

This means that cases that look viable in principle can sometimes stall because the borrower has no UK footprint, no UK income stream, or is purchasing through a complex structure. However, at 91¿´Æ¬, we approach this slightly differently and assume that a borrower may have no UK footprint at all; no UK residency, no income earned in the UK and no properties in the UK. However, a UK bank account is required. This means we can often lend in situations where other lenders can not.

In this guide for intermediaries, we explain exactly what we’ll consider for lending to foreign nationals, including affordability, income requirements and property types.

Our key lending parameters

The illustration below gives a summary and understanding of the kinds of cases we can support. As with all complex lending, these are not guarantees, and lending is always subject to underwriting and assessed on a case-by-case basis.

How do we determine eligibility for foreign national and expat BTL lending?

Eligibility is often the most uncertain part of placing a foreign national or expat BTL case. Many lenders operate defined boundaries around nationality, residency, visa status or UK credit footprint. Our starting point is broader than this, our foreign national lending proposition is designed around the principle that if the case itself is supportable, the borrower’s lack of UK footprint is not a reason to decline.

We do not restrict lending to nationals or residents of specific countries. We will consider borrowers based anywhere in the world purchasing UK property in mainland England, Wales or Scotland, including those who have never lived or worked in the UK, hold no UK assets and have no UK credit history. The only jurisdictions excluded are FATF blacklisted or sanctioned countries. Beyond that, nationality and residency are not limiting factors.

We do require that the borrower holds a UK bank account, and a UK-based agent for services (typically a solicitor or accountant) must be appointed.

Affordability is assessed entirely on rental coverage. We don’t impose a minimum income threshold, and we do not require a UK credit score. This reflects the reality that most overseas investors earn income in non-Sterling currencies or through corporate and trust structures that do not translate neatly into UK underwriting models. In these cases, the property’s ability to service the debt is a more meaningful measure than personal income.

Property types we will consider for foreign national and expat mortgages

A common assumption in a foreign national BTL lending case is that options are limited to straightforward, single-let residential properties. We, however, consider broader cases, and whilst standard residential cases are still within scope, we will also consider Houses in Multiple Occupancy (HMOs), Multi-Unit Freehold Blocks (MUFBs) with self-contained units, and mixed-use properties that combine residential and commercial elements.

Newly built, newly converted and refurbished properties are all acceptable, subject to valuation. Our maximum loan to value for foreign nationals and expats is 75% for residential properties .

For HMOs and MUFBs, experience is important. We do not impose a cap on the number of bedrooms or units for experienced landlords. For first-time HMO borrowers, a six-bedroom cap applies. For first-time MUFB borrowers, there is a six-unit cap.

Pricing and affordability

Pricing is determined on a case-by-case basis. Product periods of 2, 3 or 5 years are available as fixed and variable options, with terms up to 30 years and on both interest-only and capital repayment structures.

Affordability is assessed using an Interest Coverage Ratio (ICR). The minimum ICR is 130%, and as previously mentioned we do not enforce a minimum personal income requirement. In practical terms, this means that the case you place with us will stand or fall based on what the property generates, not on the borrower’s personal earnings. 

Borrower structures

Much like our range of properties, we will consider a number of different types of borrower structures. Lending is available to individuals, limited companies, Special Purpose Vehicles (SPVs), trusts and Limited Liability Partnerships  (LLPs).

The condition that applies across all of these is that ownership and control must be clearly verified. For straightforward structures, this is a routine part of the process. For more complex arrangements, layered offshore entities with multiple beneficial owners, or trust structures with discretionary elements, the verification process will be more involved, but complexity alone is not a reason for a case to be declined.

What we determine at application stage

We intentionally don’t publish granular lending criteria for foreign nationals and expat lending. This is because these cases vary enormously. For example – a UK expat living in Dubai with sterling-denominated income and a UK limited company structure presents a fundamentally different set of considerations from a non-UK resident investor in Southeast Asia purchasing through a layered offshore trust.

The practical implication for intermediaries is that the right first step for any case that raises questions on these points is a conversation with one of our relationship managers. That conversation will establish what is required for the specific borrower and structure involved.

Discussing a case

If you have a foreign national or expat case you would like to discuss, whether it involves a straightforward single-let acquisition or a more complex HMO purchase through an offshore structure, join our broker panel using the link below. One of our relationship managers will be in touch to discuss next steps.

All lending is subject to underwriting and valuation.

Nick Allen, Head of Marketing, Product & Proposition at 91¿´Æ¬