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Expat case study

Written by Suffolk Building Society

28 Jan 2022


Case study, Criteria, Expat

2 min read

You probably already know “we do expat”. But in which circumstances? And isn’t it confusing sometimes? We’re here to make it simple. Here’s how our expat format recently helped an intermediary struggling to place a case.

Case background

Applicant 1 – UK national living & working in The Netherlands with partner & 2 children. Earned income of €115,000.
Applicant 2 – Dutch national who was providing some of the deposit.

Wanting to purchase a residential property in London, using when back in the UK but also to be used by the applicant’s brother whilst in London.

Purchase price – £650,000
Loan required – £520,000 (80% LTV)      

The problem

The broker was coming up against the following problems:

  • Lending to someone living in Europe.
  • Income multiplier and LTV.

The fact the partner was a non-UK national and providing some of the deposit from an account in The Netherlands.  

The Suffolk solution

The answer was quite simple – a 80% LTV purchase expat residential mortgage.

We were able to offer this on a 28-year term, with a 5-year fixed rate deal on a capital & interest basis. Here’s how we did it:  

  • Income – all good! Income GBP equivalent of £98,117 with income after the haircut of £78,493. We used our 5.5x income multiplier (for salaries £75k+) on the pre-haircut income of £539,643. 
  • Affordability – it fits! With the 5-year fixed rate it’s not stressed, resulting in less onerous affordability calculation – combine this with the pre-haircut income multiple and we got the green light!

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