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Expat Residential Criteria

Mother spends time with her young daughter after applying for an Expat Residential mortgage with the Marsden.

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Last updated 31 January 2025.

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Applicant Details

21

70 or the applicants declared retirement age, whichever comes first.

2

£37,500 per application.

Please see Currency Conversions under 'Income' for more information on how we assess foreign income.

We will accept UK or foreign nationals for sole or joint applications. For foreign nationals, these applicants must have permanent right to reside, indefinite leave to remain or pre-settled/settled status. Foreign nationals must have previously resided in the UK and ideally, we would be able to locate a credit profile. Please note, foreign nationals from a High-Risk country will require a referral.

British Nationals Overseas Passports also accepted subject to maximum LTV 75%.

For any applicant who holds permanent right to reside, indefinite leave to remain or pre-settled/settled status, we require their current passport in addition to the right to reside confirmation (this may be located in a previous expired passport).

For pre-settled/settled status we would require their access share code for validation for rights to work/live in the UK. Details for this can be located on the government website; Prove your right to work to an employer: Overview (External) 

We will consider expats returning to the UK, whether they are with the same employer or have secured a new employment contract in the same field with a future start date. Please refer for more details.

Credit Criteria

CCJ’s/Defaults within the last 3 years are not acceptable.

CCJ’s/Defaults => 3 years prior to application are acceptable up to a maximum £2,500 – subject to an explanation and being cleared/satisfied 12 months prior to application.

No other adverse entries must show on credit file.

CCJs/Defaults are not acceptable over 80% LTV.

Up to 80% LTV: Mortgage, loan, HP arrears and missed payments => 3 years prior to application: Status 1s and 2s are accepted – status 3 or above not accepted.

Mortgage, loan, HP arrears and missed payments within the last 3 years are not acceptable.

Credit card, mail order, utility commitments => 3 years prior to application: Up to and including status 2s are acceptable.

Credit card, mail order, utility commitments =< 3 years prior to application: Status 2 – OK to proceed subject to the commitment being up to date for a minimum of 12 months prior to application. Status => 3 are OK subject to commitments totalling less than £500 and being up to date for a minimum of 12 months prior to application.

Above 80% LTV: Mortgage, loan, HP arrears and missed payments are not acceptable.

Credit card, mail order, utility commitments: A maximum of 3 status 2s are acceptable if less than £100.

No other adverse entries within the last 3 years must show on the credit file.

Employment Status

Applicants in probationary period are acceptable, providing they are in like-for-like employment with no gap in employment.

LTV >80%: The applicant must have been in their current business for a minimum of 3 years.

LTV <80%: The applicant must have been in their current business for a minimum of 1 year with a further 2 years’ experience in the same field.

Directors with a shareholding of less than 25% will be classified as employed. We accept salary in dividend as income. If above 25%, we classify as self-employed.

LTV >80%: The applicant must have been contracting for a minimum of 3 years.

LTV <80%: The applicant must have been contracting for a minimum of 1 year with a further 2 years’ experience in the same field.

Zero-hour contracts accepted – please refer.

We will consider professional sports persons with a maximum LTV of 80% and a maximum age at the end of the mortgage term of 40 unless adequate investment or post-retirement income can be determined. Please refer for further details.

Deposit Details

Applicants’ own deposit or gift from an immediate family member (spouse, parent, grandparent, sibling, child or grandchild) is acceptable. Evidence of the source of deposit is required.

Income

4.5 x for sole income up to £74,999 and joint income up to £999,999. 5.5 x for sole income of £75,000 or over and joint income of £100,000 or over.

We capture gross annual income and net monthly income details. In addition, we may also consider 60% of regular overtime, bonus or commission.

Self-employed applicants are acceptable subject to the ability to provide 3 years’ trading history evidenced though financial accounts and an accountant’s reference from one of the following acceptable accountancy firms;

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

For applicants on fixed-term contracts of less than 6 months, the minimum period of employment with the same employer is 6 months. For those on contracts of 6 – 12 months or more, the contract must have been renewed at least once. If the contract is for more than 12 months, the applicant must be more than 6 months into the contract.

100% private or state pension and income generated from a trust fund.

The Society may also consider a percentage of any payments received in respect of investment, dividend or rental income if evidenced by accounts or SA302s and SA100s.

100% of maintenance can be used if court ordered, or payments can be evidenced on the most recent 6 month’s bank statements.

Our acceptable currencies for Expat Residential applications are:

• US Dollar
• Euro
• Canadian Dollar
• Norwegian Krone
• Swiss Franc
• Danish Krone
• Swedish Krona
• Chinese Yuan Renminbi
• Emirati Dirham (United Arab Emirates)
• Saudi Arabian Riyal
• Hong Kong Dollar
• Kuwaiti Dinar
• Singapore Dollar
• Bermudian Dollar (if pegged to US Dollar)
• Qatari Riyal
• Japanese Yen
• New Zealand Dollar
• Australian Dollar (we do not lend in Australia)
• Bahraini Dinar
• Oman Rial

When calculating foreign income, we look at the close exchange rate on the date of application with a haircut % depending on the currency.

We will apply a 10% haircut to the following currencies:

• US Dollar
• Euro

We will apply a 15% haircut to the following currencies:

• Oman Rial
• Norwegian Krone
• Swiss Franc
• Chinese Yuan Renminbi
• Emirati Dirham
• Saudi Arabian Riyal
• Hong Kong Dollar
• Kuwaiti Dinar
• Singapore Dollar
• Qatari Riyal
• Japanese Yen

We will apply a 20% haircut to the following currencies:

• Bahraini Dinar
• Canadian Dollar
• Danish Krone
• Swedish Krona
• Bermudian $ (BMD) (if pegged to US$)
• New Zealand $ (NZD)
• Australian $ (AUD) (if not residing in Australia)

Acceptable Countries

We’re unable to accept any new applications from your clients who are residing in, or have financial links to the countries listed on our Expat Country Exclusions List (PDF).

If you have an expat client who doesn’t reside in, or have financial links to one of the countries listed, we’ll consider your application.

Mortgage Details

Minimum: £30,000 (unless otherwise stated)

Maximum: £2,500,000 (unless otherwise stated)

Please note that loan sizes over £750,000 will be subject to a % arrangement fee.

Minimum: 5 years (product dependent)

Maximum: 35 years

We will consider remortgage applications where the applicant has been the registered owner for the past 6 months.

Repayment, interest only and part and part applications accepted dependent on the selected product.

Sale of mortgaged security/investments/sale of other property/endowment.

A new residential mortgage can be considered where the applicant wishes to retain their current property on a BTL basis.

We need to be satisfied that the existing mortgage will be converted to a permanent letting arrangement and we require an interest coverage ratio of 125% minimum rental cover based on reference rate of 5.5% or chosen product rate + 2% (whichever is the higher of the two) for UK basic rate tax payers, or for higher rate tax payers, 145% at 5.5%.

Anticipated rental income must be confirmed and may be required to be evidenced by a letting agent.

Not accepted. Properties that do not have any pre-emption remaining will be considered.

All family members (i.e. wife/husband/partner/children/parents) residing in the property is acceptable and they do not have to be named on the mortgage, but with the requirement to confirm that no rent is being paid.

Family members who do not form part of the family unit cannot reside in the property unless they are named on the mortgage.

Property Criteria

£100,000

The property must be for the residential use of the applicant(s) and/or their family and be in England and Wales.

  • Main UK residence only.
  • Properties must be of traditional construction.
  • Timber framed properties may be considered if brick clad.
  • New build houses subject to NHBC/Local Authority Building Control Scheme/Premier/Checkmate (Castle 10)/Buildzone/Zurich/ICW (International Construction Warranties)/AHCI Ltd or Professional Consultants Certificates – maximum 80% LTV.
  • Purpose built flats/maisonettes are acceptable (new builds not acceptable). Must be up to 60% LTV and leasehold.
  • Flats/apartments more than 4 storeys. If above 4 storeys, they must be serviced by at least 1 lift. Flats above 6 storeys are not acceptable.
  • Attached or detached annexes will be considered if the main residence is for personal use and other buildings do not form part of a commercial going concern. This includes:
    • A primary residence with a single annex utilised for extended family use with no rental income generated.
    • A single annex that generates AST or holiday let income.
    • Multiple annexes/outbuildings that generate AST or holiday let income.
  • Properties that have more than 1 kitchen providing they are not HMOs.
  • Second homes for immediate family/personal holiday use (maximum 75% LTV).
  • Tied accommodation for agriculture or employment purposes. Please refer for more details.
  • Retrospective warranties may be considered on conversions such as barns and outbuildings from our list of approved providers. Please refer for more details.
  • Properties up to 30 acres providing there is no commercial usage. We will consider up to 95% of the concessionary purchase price, subject to a minimum 10% variance of open market value to concessionary purchase price.
  • Properties must be of traditional construction.
  • HMOs, self-builds, properties held in Trust, present or former hotels/guest houses/B&B’s, commercial properties (even if applicants intend to convert back to residential).
  • Holiday homes.
  • Prefabricated properties.
  • Studio flats and ex-local authority flats/maisonettes.
  • New build flats.
  • Flats above commercial property.
  • Properties under 5 storeys with a flat roof are unacceptable security.
  • Any construction covered by Housing Defect Legislation such as high alumina cement, prefabricate reinforced concrete, large panel system, BISF.
  • Any property where an EWS1 form for wall cladding is required.

Tenure

Both freehold and leasehold are acceptable for houses.

Freehold flats/maisonettes are not acceptable - leasehold only.

Flying freeholds – refer.

For leasehold, there must be a minimum of 85 years unexpired lease at the start of the mortgage and 55 years remaining at the end.

Service Agent Agreement

A Service Agent Agreement will need to be completed by your client before the expat mortgage is completed. This will confirm the name and address of somebody in England or Wales who will act as the Service Agent and who the Society can serve papers to should the borrower fall into arrears and possession proceedings need to commence.

Reasons for Additional Borrowing

  • Home improvements
  • Debt consolidation (maximum £30,000). For applicants with a sole income of £75,000 and over, or a joint income of £100,000 and over, we may consider more than £30,000, subject to debt consolidation not exceeding 49% of the total loan required or 20% of the property value. The maximum LTV for the total loan is 80% LTV (flats up to 60% LTV).
  • Gift to family member
  • Purchase of an investment or second home

Please note, evidence would need to be submitted to satisfy the above.

Foreign Nationals Skilled Workers (T2 Visa)

We accept foreign nationals who have secured Skilled Worker Visas (formerly T2 Visas) for certain employment sectors within the UK. Eligible applicants must have a job offer and a certificate of sponsorship from an approved UK-based employer to qualify for the immigration status.

  • Sole applicants minimum income £25,000/annum
  • Joint minimum income £35,000/annum
  • Applicants to have proof of residing in the UK for minimum of 12 months
  • Skilled Worker (T2) Visa with at least 12 months remaining at point of application
  • We will accept maximum 25% of total deposit required as a gift from an immediate family member, subject to origination not from the High-Risk Country list
  • 75% of deposit evidenced from own savings resources


At application we will require a copy of the Visa and confirmation that the applicant has resided in the UK for the last 12 months.

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