Several UK lenders have recently announced improvements to their mortgage offerings for foreign nationals and returning expats, and the changes reflect a growing recognition of the unique needs of expatriate borrowers and skilled foreign professionals seeking to purchase property in the UK.
Nottingham Building Society
Nottingham Building Society has taken a leading role in this shift, announcing reductions of up to 11 basis points on its range of mortgage products for skilled foreign nationals and UK expats returning to the country.
The mutual now offers a variety of two and five-year mortgage products with flexible criteria of up to 90% LTV, including both fee and no-fee options.
In addition to rate cuts, Nottingham has reduced its maximum product fee from £1,999 to £1,499 and lowered the stress rates used for affordability testing. These changes aim to make mortgages more accessible and affordable for buy to let expat borrowers.
Notably, Nottingham has also addressed a key challenge for foreign nationals – the lack of UK credit history. Through a partnership with Nova Credit, the building society now provides mortgage brokers access to historic credit files from various countries, enabling a more comprehensive assessment of applicants’ creditworthiness.
The lender has also expanded its visa coverage to include Global Talent and Pre-Settlement visas, alongside Skilled Worker and Health and Care visas, broadening the range of foreign professionals eligible for their mortgage products.
Other Lenders Join the Trend
The Mortgage Lender (TML) has also made moves in the expat mortgage space, announcing rate reductions on their expat buy-to-let products. These cuts, along with reductions on holiday let and short-term let products, demonstrate a growing focus on serving the diverse needs of expat property investors.
Keystone Property Finance also marked its sixth anniversary with rate cuts across its expat and holiday let product ranges, with new rates starting from 4.64% for these specialised mortgages.
Market Impact and Expert Commentary
These developments signal a positive shift in the expat mortgage market, with lenders actively working to remove barriers and provide more competitive options for foreign nationals and returning expats.
Luther Yeates, Head of Mortgages at UK Expat Mortgage, commented on the changes: “The recent moves by lenders like Nottingham Building Society, TML, and Keystone are encouraging for expats and foreign nationals looking to invest in UK property. We’re seeing a real commitment from lenders to understand and cater to the unique circumstances of these borrowers. The combination of rate reductions, expanded visa acceptance, and innovative approaches to credit assessment is making the dream of UK property ownership more attainable for a wider range of international professionals.”