Expat Mortgage - Broker Page

Key Criteria

The application is paper based and the originals need to be posted/couriered into the office.  Any incomplete applications will be returned and not reviewed.  Please see packaging guidelines for full information.

Client

1) At least one applicant must be a British passport holder with British citizen noted in the nationality section of their passport.  The Brit does not need to be the main income earner.

2) They must be remaining as expats and not planning to move back to the UK in the near future or reside in the property in the future.

3) The client cannot be living or working in a country on our restricted list.

4) The client needs to have a UK bank or building society account from which direct debits can be arranged to pay their mortgage.  This must be opened prior to the mortgage being offered.

5) The requirements are 3 months bank statements from all accounts including the account into which their salary/pension is paid and 12 months mortgage statements for any other properties owned.  See packaging guidelines for a full list of required documents.

6) The client can never have been declared bankrupt, insolvent or equivalent and no action should be pending; should never have entered into any arrangement with creditors or party to a voluntary arrangement; should never had a property repossessed by a lender or entered into an arrangement for mortgage arrears; should not have an unsatisfied Court Order or have any such actions pending.  If a Court Order has been satisfied, we will look at this on a case by case basis.

Portfolio Landlord

Once an applicant owns four or more mortgaged buy to let properties, they are classified as a "Portfolio Landlord" in accordance with the Prudential Regulation Authority definition.  At this point, lenders are required to apply enhanced affordability checks.

If your client is a Portfolio Landlord as defined above, Skipton requires any properties within the portfolio, that are mortgaged via other lenders, to meet Skipton International's BTL affordability criteria.  This means that rental income must provide a minimum of 125% interest cover, when interest is calculated on total borrowings at a rate of 6%.  This calculation is applied to all BTL properties mortgages outside Skipton International on a collective basis.  In the event of a rental shortfall the application willl be declined.  In addition:

• Skipton International can offer a maximum of 5 BTL properties to any one client.
• Skipton International is unable to accept applications from clients who have 10 or more BTL properties.
• Skipton International will allow a maximum of 3 BTL properties, within the whole portfolio, to be held within any 1 post code district, e.g. SW1.  In the event of more being held, the application will be declined.

The above is not exhaustive just a guide.

Income

Clients can be employed, self employed or pensioners.  Income must be from one source only.

i) If employed, the clients must be working for a clearly identifiable, well established employer and earning at least £40,000pa or the equivalent of £50,000pa if paid in local currency.  Certain guaranteed allowances may count towards this figure (not including commission, overtime or bonuses).  Any probationary period must be passed before applying and the client must be able to provide 3 months payslips from the new role.  If being seconded with an existing job, at least 1 payslip is required from the new location.   An employer’s letter confirming main terms of employment must also be provided.  Any earned income cannot be subject to UK income tax.

ii) If self-employed, the clients must provide evidence that annual income is in excess of £60k p.a. sterling/ or equivalent of £75k p.a. if earned in local currency, and confirmed by one of Skipton’s accountancy firms, as detailed at the end of this information.  They must complete our accountants’ certificate which can be found with the list of accountants.  Any earned income cannot be subject to UK income tax.

Please see below for the list of accountancy firms and networks that can provide verification of self employed income by means of the template below.  Three years accounts will be required and an average figure will be taken. However, if the third year’s income figure is lower than the previous year’s income figure, the lower figure will be used for the mortgage application.

• Baker Tilly International
• BDO
• Crowe Horwath International
• Deloitte
• Ernst & Young (EY)
• Grant Thornton International
• HLB International
• KPMG International
• Moore Stephens International
• PKF International
• Price Waterhouse Coopers (PwC)
• RSM International
• UHY International

 https://www.skiptoninternational.com/sites/default/files/uploaded/forms/Accountants%20Certificate.xlsx

 iii) If pensioners, a minimum income of £40,000pa or the equivalent of £50,000 if paid in local currency.  This can be subject to UK income tax if the clients have retired abroad and can be from more than one pension provider.

Mortgage

1) We support mortgages on properties in England, Wales, Scottish mainland and the Channel Islands. Please note Skipton International does not lend on properties located in Northern Ireland, Isle of Man or the islands of Scotland

2) Minimum mortgage of £100,000 and maximum exposure per client, together with connected persons, of £3m.

3) The maximum age of applicants at the start of the mortgage is 69 and maximum age at expiry of mortgage is 84. 

4) The maximum mortgage term is 30 years subject to point 3.

Property

1) The property must be for buy to let purposes and neither the borrower nor their family can live in the property.

2) The property cannot be on our unacceptable properties list.

3) Consumer buy to lets are acceptable.

4) The property must be let on a suitable AST (or a Private Residential Tenancy agreement if in Scotland) and not be used as a holiday let, HMO or bedsit/studio flat.  Please refer to our property letting requirements documents for further information. 

Property Letting Requirements (England and Wales)
Property Letting Requirements (Scotland)

5) The property needs to have been owned by the existing owner for a minimum of 6 months (this applies to purchase/remortgage/equity release or further borrowing). Inherited property is not subject to this 6 months as long as Probate is complete and a letter from the solicitor dealing with the estate confirms that the customer has inherited the property.

Restricted Countries

Skipton will not accept applications from clients resident in the following countries: 

• Afghanistan
• Albania
• Algeria
• Angola
• Argentina
• Armenia
• Australia
• Azerbaijan
• Bahamas
• Bangladesh
• Belarus
• Belize
• Benin
• Bolivia
• Borneo
• Bosnia
• Botswana
• Burkina Faso
• Burundi
• Cambodia
• Cameroon
• Cape Verde Islands
• Central Africa
• Chad
• Comoros
• Cuba
• Democratic Republic of Congo
• Djibouti
• Dominican Republic
• Ecuador
• Egypt
• Equatorial Guinea
• Eritrea
• Ethiopia
• Gabon
• Gambia
• Gaza
• Georgia
• Ghana
• Guatemala
• Guinea – Bissau
• Guinea (Republic of)
• Guyana
• Haiti
• Honduras
• Indonesia
• Iran
• Iraq
• Ivory Coast
• Kazakhstan
• Kenya
• Kiribati
• North Korea
• Kosovo
• Kyrgyzstan
• Lao PDR
• Lebanon
• Lesotho
• Liberia
• Libya
• Madagascar
• Malawi
• Maldives
• Mali
• Marshall Islands
• Mauritania
• Mexico
• Moldova
• Morocco
• Mozambique
• Myanmar
• Namibia
• Nepal
• Nicaragua
• Niger
• Nigeria
• Pakistan
• Palau
• Palestine
• Panama
• Papua New Guinea
• Paraguay
• Russia
• Rwanda
• Sao Tome & Principe
• Senegal
• Serbia
• Seychelles
• Sierra Leone
• Solomon Islands
• Somalia
• South Africa
• South Sudan
• Sri Lanka
• Sudan
• Swaziland
• Syria
• Tajikistan
• Tanzania
• Timor-Leste
• Tobago
• Togo
• Trinidad
• Tunisia
• Turkmenistan
• Uganda
• Ukraine
• Uzbekistan
• Vanuatu
• Venezuela
• Vietnam
• Yemen
• Zambia
• Zimbabwe

Unacceptable Properties

Energy Performance Certificate (EPC) for properties in England and Wales only

From the 1st April 2018, all Landlords will have to ensure rental properties meet a minimum Energy Performance Rating of E in order to be able to create a tenancy (unless exempt under the current regulations). Properties that are graded F or G are classed as substandard under the legislation and cannot be let.

As such, Skipton International will only be able to provide mortgages against rental properties with an EPC of A to E inclusive.

Skipton International will require applicants to supply a copy of a current EPC relating to the security property at the time of the Mortgage Application.

Skipton reserve the right to request the provision of an EPC at any point during the life of your mortgage.

For further information and guidance, please visit the UK Government web site;

https://www.gov.uk/government/publications/the-non-domestic-private-rented-property-minimum-standard-landlord-guidance

To check if your property meets the required standards, simply click on the following link, enter the postcode and download the Energy Performance Certificate in PDF format.

https://www.epcregister.com/reportSearchAddressTerms.html?redirect=reportSearchAddressByPostcode

Construction

1. Properties that will not be complete (ready for tenant occupation) within 6 months of applying to Skipton.

2. Non standard construction or conversions will be assessed on a case by case basis.

3. LPS (large panel systems) and PRC (precast reinforced concrete) properties. However, some modern building construction types will be acceptable.

4. Properties less than 10 years old without a building warranty certificate.  A list of acceptable providers is available on request.  Architects' certificates are only acceptable on developments with less than 15 units.

HMOs

1.  Large Houses under Multiple Occupancy (HMO)

   i)             England and Wales – properties that have 5 or more unrelated tenants residing in them and require specific licensing.  Cases where up to 4 unrelated tenants are occupying the same property will be considered (unregistered HMO).

   ii)            Scotland – properties that have 3 or more unrelated tenants residing in them and require specific licensing.  Cases where up to 2 unrelated tenants are occupying the same property will be considered.

2. Properties with five or more bedrooms will be assessed on a case by case basis.

Flats

1. Flats over 5 floors with no access to a lift. No restriction on number of floors if not ex LA.

2. Ex-local Authority flats exceeding 5 floors or exceeding 48 units in the block.

3. Studio flats / Deck Access flats / gallerised (mezzanine) flats / bed sits.

4. Leasehold properties with less than 85 years to run at the point of application.

5. Properties directly above commercial premises need to be agreed prior to an application being submitted.

6. Post Grenfell Towers, we need confirmation that any cladding/external insulation meets current fire regulations.  We will require evidence of this prior to a valuation being instructed.  If not, the valuer may return a nil value on the property. Confirmation can be in the form of a report by either a “Fire Safety officer” or a “Structural Engineer” with the appropriate fire prevention experience – this would need to confirm that the property has been inspected post 14 June 2017 and considered to meet current requirements

7. Flats with/ without a leasehold and where the client owns the full freehold (not just a share)
   
   
8. Freehold and flying freehold (or part thereof) flats in England or Wales.  

Other

1. Properties less than 10 years old without a building warranty certificate.  A list of acceptable providers is available on request.  Architects' certificates are only acceptable on developments with less than 15 units.
   
   
2. Houses that are leasehold will be assessed on a case by case basis to ensure there are no onerous ground rent conditions
   
   
3. Grade A / Grade 1 Listed properties.

4. Any properties affected by invasive plant species e.g. Knotweed.

5. Student or holiday lets

6. Thatched properties.

7. Leasehold properties with less than 85 years to run at the point of application.

8. Properties that comprise more than one independent unit of accommodation (annexes, wings and duplex properties etc).

9. Properties being purchased at auction.

Packaging Guidelines

Original Application Form and Direct Debit Mandate (must be signed in accordance with passport and wet signatures provided).  All non-English documentation must be translated by a reputable translation company.

Applications will not be underwritten unless a full pack is received.  Incomplete applications will be returned to sender. For each applicant please ensure that you provide the following supporting documentation with the application. The pack must be posted/couriered to Skipton International as originals are required.  If a panel broker, please contact the sales team for guidance on submitting applications.

Expatriate Application Pack

Application Form and Direct Debit Mandate (must be signed in accordance with passport) and attach the following supporting documentation:

1. Photo Identification

Certified copy of passport (Our Identification verification form, seen on page 18 of the application pack, should be used by the certifier). If not using the form, the certification needs to be include the wording “Having seen the individual and identification document at the same time I certify this is a true copy and that the photograph is a reasonable likeness”.

Copies must be certified by a professional person. For a list of Acceptable Certifiers please visit www.skiptoninternational.com/sites/default/files/forms/VerificationofIdentityHelpSheet.pdf

2. Address Verification

Please provide one of the following as proof of current address (not required for previous addresses):

• Original Letter from employer – this must confirm the current residential address and any correspondence address (including PO Box number)
• Original / certified copy of a Utility bill – no longer than 3 months old (excluding mobile phone bill or car insurance)
• Original / certified copy of a Bank Statement – no longer than 3 months old
• If a PO Box address is required, proof must be included as above (mandatory for clients in the UAE and Caribbean)

If the client wishes to use a correspondence address (that is not their residential address) you will need to supply the following:-

• Certified copy of resident’s passport(s). (Our Identification verification form, seen on page 18 of the application pack, should be used by the certifier. If not using the form, the certification needs to be include the wording “Having seen the individual and identification document at the same time I certify this is a true copy and that the photograph is a reasonable likeness” ).
• Original / certified copy of a Utility bill of the occupier– no longer than 3 months old (excluding mobile phone bill or car insurance) 

Copies must be certified by a professional person. For a list of Acceptable Certifiers please visit www.skiptoninternational.com/sites/default/files/forms/VerificationofIdentityHelpSheet.pdf

3. Income Confirmation - Income must be from one source and cannot include rental income

i. Employed income

Please provide both of the following;

• Original letter from employer confirming income, position and term of employment / or pension contract in English.
• Latest 3 months salary slips – can be copies, certification not required.

ii. Self Employed Income Confirmation

If self employed, the Skipton International Accountants certificate needs to be completed by one of our approved accountants, the list can be found on page 6 of the UK BTL mortgage leaflet or on the criteria link of this webpage. This needs to be original not a scanned/photocopy. https://www.skiptoninternational.com/sites/default/files/uploaded/forms/Accountants%20Certificate.xlsx

Please note, an average of the 2 years income will be used, unless the second years income is lower than the first year’s income figure, then the lower figure will be used for the mortgage application.

iii. Pension Income – can be from more than one pension provider

• Last 3 months pension slips (can be copies – certification not required) or if not provided:
• Most recent annual statement from the pension provider (can be a copy – certification not required)

4. Bank/ Credit Card Statements – can be copies, certification not required

Please provide all your main bank account statements for the LATEST 3 calendar months; these must show your salary / pension being credited and mortgages/ rent being debited. The statements must also be clearly identifiable, in English, detailing account holder’s name(s), account number, narrative, debits, credits and running balances. Please also supply your latest credit card statement showing transactions and limits. Further credit card statements may be required if the deemed necessary by the underwriter.

Skipton International is unable to process an application where you have either had any reversals, returned items or debit balances in excess of any overdraft limit within the last 3 months.

5. Mortgage statements – can be copies, certification not required

Please provide the latest 12 months mortgage statements for all mortgages held. Statements must detail account holder’s name(s), account number, narrative, debits, credits and running balances.

Skipton International is unable to process an application where you have either had a late or missed mortgage payment within the last 12 months.

6. Source of Deposit Funding

For all purchases you must complete the “Declaration of Source of Funds” form (seen on page 20) and provide supporting documentation: a list of acceptable documentary evidence is noted on page 21. This is not required for remortgages.

7. Gift received (where the deposit or other costs are being donated by a third party and can include gifted equity)

Where the deposit or transaction costs/equity are being donated by a third party, please complete the Gift Letter. Please provide supporting documentation which details the source of funds, a list of acceptable documentary evidence is noted on page 21. An amendable version is available on our website www.skiptoninternational.com/forms-download

8. Tenancy Agreements

Please supply the latest copy of the Assured Short Hold Tenancy Agreement for ‘The Property’ if the application relates to a remortgage, equity release, further advance and revesting of names. Please see our ‘Property Letting Requirements’ at https://www.skiptoninternational.com/sites/default/files/uploaded/forms/Property-Letting-Requirements.pdf