Penrith Building Society has made a notable return to the expat and foreign currency sectors, marking its comeback after a strategic pause in July.
- Key among its offerings is an increased loan-to-value ratio, now set at 80%, appealing to a broad range of borrowers.
- The society has also introduced a reduced minimum loan requirement of £50,000, broadening access to more clients.
- An interest-only option is now available, providing flexible payment terms that cater to different financial strategies.
- Both products will be facilitated on a Joint Borrower Sole Proprietor basis, targeting expats and those paid in foreign currencies.
Penrith Building Society’s re-entry into the expat and foreign currency markets is a strategic move designed to accommodate specific client needs previously unmet by high street lenders. In July, the society had withdrawn its services from these sectors, but the demand and potential for tailored financial products have prompted its return.
The society’s new mortgage products boast an increased loan-to-value (LTV) ratio of 80%, which is a substantial incentive for potential borrowers who seek to maximise their borrowing capacity. This enhancement in LTV is particularly attractive to those looking to leverage a higher proportion of their property’s value.
A particularly beneficial feature of the new offerings is the reduction in the minimum loan amount to £50,000. This change drastically widens the pool of eligible borrowers, enabling more individuals to access the financial assistance they need, which is especially significant for smaller-scale property investments.
Furthermore, the newly available interest-only option introduces a level of flexibility that can be highly advantageous for borrowers who may prefer or require lower initial payments, thereby enhancing cash flow management.
The products are introduced on a Joint Borrower Sole Proprietor (JBSP) basis, a scheme that facilitates property acquisition by recognising combined incomes without joint ownership. This means expats and those in the UK earning in foreign currencies, such as pensions or occupational payments, can benefit significantly from these tailored solutions.
Tim Vigeon, Head of Product Development at Penrith, noted the society’s history of customising financial products to meet unique client requirements, underscoring the emphasis on manual underwriting as a differentiator from standardised offerings at high street banks. He remarked on the versatility of the new expat residential product, which allows lending to UK expats residing abroad, subject to certain geographical restrictions imposed by the society’s lending criteria.
These new offerings also accommodate clients who earn in multiple foreign currencies, thus acknowledging the increasing diversity in occupational and pension income sources among UK residents. The inclusion of such provisions highlights Penrith’s commitment to embracing the complexities of the modern financial landscape.
Penrith Building Society’s strategic enhancements mark a significant advancement in catering to the financial needs of expats and foreign currency earners.
