Vernon Building Society has launched an expat buy-to-let mortgage for British nationals living abroad who want to buy or hold rental properties in England or Wales.
The two-year variable rate deal is priced at 5.29% and offers a 2.31 percentage point discount to Vernon’s standard variable rate, which currently stands at 7.6%.
It has a £999 arrangement fee and is available up to 75% loan-to-value up to £1 million.
Affordability is assessed at an interest coverage ratio of 140%.
The product is available to limited liability borrowers and consumers, and is open to first-time landlords.
Borrowers must be British citizens with a British correspondence address, a British bank account and a minimum income of £30,000.
The mutual say the launch reflects rising demand in a specialist part of the market, where specific buy-to-let options for expats remain limited.
Brendan Crowshaw, head of mortgage and savings distribution at Vernon Building Society, said: “The expat property investment market is growing rapidly, yet expat BTL mortgages remain a specialist segment with limited options.
“Expat landlords face real barriers to investing in UK property as mainstream lenders simply cannot meet their circumstances.
“Vernon’s new Expat Buy to Let product offers new choice, specialist expertise and the kind of personal acceptance and flexibility that matters when circumstances are complex.”
The association added that its manual underwriting approach allows for case-by-case decisions, which it says is especially valuable for borrowers with complex income or residency profiles.