Case study: Expat Buy to Let

Our Expat Buy to Let products could be suitable for your expat clients who are looking to invest in a buy to let property in the UK. Here's how we helped to support David with an Expat Buy to Let solution. 

Meet David…

David is a French National with settled status in the UK. He currently works in Qatar as a consultant, earning 300,000 QAR (£65,000 GBP) with an additional income of 150,000 QAR (£32,000) in bonuses and living allowances.

He has a property in the UK worth £900,000 that is let out. He’d like to capital raise £300,000 to purchase a second buy to let property. He doesn’t own a residential property and is unsure if his basic salary is enough to borrow the funds required. His current property has a rental income of £2,600 per month. He has no mortgage on it and doesn’t want to use his investments to fund the new purchase.

What is David’s lending problem?

David is a foreign national expat and doesn’t have a UK residence. The rental income falls slightly short, so his income is needed to support affordability. On its own, his basic income isn’t enough to support a mortgage of £300,000.

What was our solution?

We’ll accept foreign nationals with permanent right to reside and pre-settled or settled status, and we’re happy to accept that David doesn’t have a UK residence. He provided us with sales particulars for the property he wants to purchase and we were happy to accept his reason for capital raising on his existing property.

As the rental income fell short, we were able to accept top slicing (country exclusions apply) and as David had received his bonus for 2 years we could accept 60%. His living allowance is guaranteed so we considered it in full for affordability.