Vida Homeloans targets expats with BTL mortgage range

A buy-to-let (BTL) range aimed at existing UK property owners living abroad has been unveiled by Vida Homeloans. The specialist intermediary-only

A buy-to-let (BTL) range aimed at existing UK property owners living abroad has been unveiled by Vida Homeloans.

The specialist intermediary-only lender has launched a mortgage range targeted at expats who wish to invest in the UK private rented sector.

The maximum loan sizes are £1m for existing landlords and £500,000 for first-time landlords. The maximum loan-to-value is 75 per cent and there is no minimum income requirement or employment restrictions. In fact, applicants can even be retired.

Borrowing rates start at 3.89 per cent variable for a two-year tracker and 3.99 per cent for a two-year fixed rate deal. 

Vida Homeloans said it has used criteria designed in partnership with brokers and networks working in this specialist sector. 

Vida allows capital raising remortgages for any purpose and will lend on houses of multiple occupancy up to eight bedrooms and multiple unit blocks up to five units. Applicants can reside in any country worldwide as long as it is a Financial Action Task Force member country.

Provider view:

Louisa Sedgwick, director of sales mortgages at Vida Homeloans, said: “We listen to our distribution partners and our new Vida Expat proposition is the latest evidence of our partnership approach to product design. We continue to commit to offer intermediaries innovation and flexibility in securing the best mortgage deal for their client’s needs.”

Adviser view:

Jane King, mortgage adviser at London-based Ash-Ridge Private Finance, said: “We only have one building society offering mortgages to expats, so the fact that a major lender such as Vida Homeloans is offering these loans is to be welcomed. Also, other building societies tend to be very strict in their lending criteria when offering expat products. But there is a lot I like with Vida Homeloans as in the LTV range is good. So this is a big step and I can see it being very popular with the right client.”

Stuart Marshall, managing director of Liquid Expat Mortgages, said: “We’ve been impressed by Vida’s responsiveness to market demand and this latest product launch certainly gives them some of the most flexible criteria in the expat sector right now.” 

Charges:

Loans up to £250,000 come with a product fee of £1,995 and over £250,000 cost 1.5 per cent.

Verdict:  

Tapping into the buy-to-let market is clearly vital for any lender. However, this can throw up some logistical and lending issues when your clients are abroad. Vida Homeloans have overcome this by launching a specific range that helps expats invest in the UK’s buy-to-let industry. 

As maximum loan sizes available range from £1m for existing UK landlords and £500,000 for first-time landlords, there is clearly a lot of flexibility involved. It is clear from this proposition that Vida Homeloans aims to strengthen its position in the mortgage market. 

Go to Source

COMMENTS