UK Building Society Offers Expat Mortgages

by Carla Johnson, Investors Offshore.com

09 May 2006

The UK's Derbyshire Building Society has entered the expatriate mortgage market with the launch of Buy-to-Let and Flexible Tracker mortgages for UK nationals who live abroad but still own property in the UK.

Expatriates looking for a Buy-to-Let mortgage can take advantage of The Derbyshire’s 'three year' fixed rate of 5.25% until 31 August 2009. For extra flexibility, overpayments of up to 10% a year can be made without incurring early repayment charges. At the end of the three year term, the interest rate tracks Bank of England Base rate at a margin of +1% for the remainder of the mortgage. These terms are available for up to 10 properties or a maximum amount of £1.5m per applicant. The individual loan maximum is GBP500k.

For expatriates who still have a spouse or family member living in their UK property, then a Flexible Tracker mortgage is available at 4.75% for 2 years. This mortgage also tracks the Bank of England base rate, initially at a margin of +0.25% for two years until 31 August 2008, followed by a margin of +1% for the remainder of the term. Overpayments, payment holidays and underpayments are also additional flexible features of this loan.

Fiona Passey, Director of Offshore Banking at The Derbyshire, said: "Our entry into the expatriate mortgage market demonstrates our broader commitment to meeting the financial needs of British expatriates who now live and work abroad. Based on our experience in the offshore markets from our savings bank subsidiary, Derbyshire Offshore, we have developed mortgage products tailored for this special group of customers.

"We are delighted to be able to offer British expatriates a choice of competitively priced mortgage products in addition to the savings accounts we offer through Derbyshire Offshore."

The application fee for both of these loans is GBP595. Products are fully portable. These new mortgages are available through Derbyshire Direct, the Society’s telephone mortgage team on +44 (0) 1332 844792.

Derbyshire Offshore is at a trading name of The Derbyshire (Isle of Man) limited a wholly owned subsidiary of Derbyshire Building Society. Derbyshire Offshore is regulated by the Financial Services Commission on the Isle of Man and is licensed for banking business. In addition to the Isle of Man Depositor Protection Scheme (prescribed in the Banking Business Compensation of Depositors Regulations 1991), Derbyshire Building Society has given an irrevocable and binding undertaking to ensure that, whilst Derbyshire Offshore remains its subsidiary, it will at all times be able to discharge its obligations as they fall due. Their products are primarily designed for non-UK residents who wish to benefit from interest on their offshore investment without deduction of tax.

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