Suffolk Building Society has announced it is cutting interest rates on its mortgages for expats looking to invest in holiday lets in the UK.
The building society is reducing rates on its two-year discount and its two and five-year fixed rate deals.
It has also increased the maximum loan size for its expat holiday let mortgages to £1m.
What are the new interest rates?
The lender’s two-year discount at 80% loan to value (LTV) is now 5.79%, a fall of 0.15%.
Its two-year fixed rate has fallen by 0.1% to 5.99%.
Its five-year fixed rate at the same LTV tier has decreased by 0.2% to 5.89%.
Who can apply?
The new rates are available to expats living anywhere in the world.
What are the benefits of investing in a UK holiday let?
Suffolk Building Society says that its new rates will give overseas customers a “better deal if they are looking to keep a foothold on the UK property ladder, achieve a passive income while abroad, and have somewhere to stay during trips back home.”
What other changes has Suffolk Building Society made?
The building society has also increased the maximum loan size for its 90% LTV residential mortgages to £650,000.
It has also increased the maximum loan size for its 80% LTV interest-only UK and expat residential products to £1m.
What has Suffolk Building Society said about the changes?
Charlotte Grimshaw, head of intermediary relations and mortgage sales at Suffolk Building Society, said: “Expat lending is one of our specialist niches and so we are committed to meeting the growing demand from both brokers and their clients in this market.
“By refreshing our rates, we aim to provide competitive and flexible options catering to the needs of expat borrowers around the world, ensuring they have the support and financial products to make the most of investment opportunities.”
She continued: “We have amassed enough experience during the last few years to now be in a position where we can increase the maximum loan size for expat holiday let in line with other similar products such as standard holiday let, standard buy-to-let and expat buy-to-let products.”
What does this mean for you?
If you are an expat looking to invest in a UK holiday let, then these changes from Suffolk Building Society could be good news for you. The lower interest rates and increased maximum loan size could make it easier for you to get a mortgage and buy your dream property.
If you are considering investing in a UK holiday let, it is important to speak to a mortgage broker to find out more about the different options available to you.