expat mortgage approvals holiday let mortgages

Buy To Let Mortgages for UK Ex Pats

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Buy to Let Mortgages for UK Ex Pats. Expats find the UK still offers very solid and profitable returns.

Expat buy-to-let investments will continue to offer attractive rates of return compared to other asset classes, expat investors have increasingly searched out cheaper and higher yielding properties, research has found.

 The expat private rented sector has grown substantially in recent years. One in five (4.7 million) households in England now rent privately.

Nearly half of 25- to 34-year-olds live in the private rented sector (46%), almost double the percentage in 2006 (24%). There has also been a considerable increase in the proportion of 35-44-year-olds in the private rented sector over the past decade, rising from 11% to 29%.

The wise expat will use an independent broker!

Borrowers going through an independent mortgage adviser have access to many more mortgages than those going direct to the lender, including specialist mortgages for the self-employed and later life lending solutions such as lifetime mortgages.

Buy to Let Expat UK homeowners who benefitted from an independent mortgage adviser searching the market for the best expat mortgage deal were more likely to have switched in the last five years (39%), compared to just 22% of those who went direct.

Expat borrowers who used an expat independent mortgage adviser were also overwhelmingly in favour of doing so again. 98% said that they found the support of a mortgage adviser ‘invaluable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Help required?

If you would like to review your current expat mortgage or apply for the first time, please do make contact. 0ne of our expert independent advisers will be happy to guide you.

EXPAT MORTGAGE

Fixed Rate Expat Mortgage

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Fixed rate expat mortgage and re-mortgages. Expats with a mortgage in the UK should avoid the “wait and see” approach

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage, but it certainly makes sense to check how your existing deal stands up to the future.

 Fixing for the longer term could prove prudent

Popularity of longer-term deals had waned at the start of the year with expat borrowers opting to fix their mortgage for two years.

Greater competition from lenders keen to lure in borrowers for longer terms and rate rises on five-year deals increasing far less than those of the two-year options has caused a shift.

In June this year demand for five-year fixed-rate re-mortgages went up 40%. Thus representing half the market according to the report. In April they made up just 28% of this market.

It also emerged the number of expat borrowers using a broker to re-mortgage has also hit a record high. So now is the time for a fixed rate expat mortgage.

Lenders are eager to attract longer-term business which has created a competitive landscape for expats. This has ensured five-year average rates have remained relatively flat month-on-month.

Role of the UK broker

More expats are turning to a broker. This is perhaps because choosing a mortgage is one of the biggest challenges they will face whilst residing overseas.

Help required?

If you are an expat looking for a new or re-mortgage, please do get in touch. One of our independent advisers will be happy to assist.

expats uk property london

Expats enter the UK buy-to-let market?

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Expats enter the UK buy-to-let market. As such a large number of expats are entering this market for many reasons as below.

Firstly Buy-to-Let properties offer…

Interest only mortgages.

Good potential returns on capital invested.

Tax efficiency.

Attractive mortgage interest rates.

Potentially better returns than on offer at high street banks.

Finally these are just a few reasons why expats are considering the buy-to-let market.

If you are considering entering this market, always seek advice. As such we offer advice on the types of mortgages available that best suit your needs.

You will need a deposit of at least 25%. However this varies from lender to lender, so do contact us to discuss your options.

Valuable top tips on buy-to-let properties

  • Choose an area you know for your buy to let investment.
  • Make sure the area has potential for growth in the future.
  • Do the figure work and be sure of the level of rental income you can expect.
  • Think about the type of tenant you are looking for and match the property to fit.
  • Check with an accountant your own tax position if you went ahead.
  • Make sure the mortgage deal is the right one for you.

Renting property is set to increase in 2025

Home ownership in the UK is set to fall below Europe. And for the first time after the boom in buy-to-let lending in the last 10 years.

More and more people in the UK are pushed into the rental sector right now. Additionally this is allowing our continental neighbours to catch up, according to latest figures. Expats enter the UK market and can take advantage right now.

Can we assist?

If you require help with your new or re-mortgage, please do call or contact. One of our fully qualified independent advisers and they will be happy to assist.

expat mortgage approvals holiday let mortgages

Expat Landlords Expand UK Holdings

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Expat Landlords expand UK holdings. One in five expats intend to expand their buy-to-let portfolios in 2024/25, according to research. Also the Northwest is emerging as the most tempting region.

The study found more than one in three expat landlords (33%) plan to buy in the Northwest, beating the Southeast and Yorkshire & The Humber.

Regions reporting a higher proportion of buyers than sellers in the next 12 months included the East and West Midlands plus the Southwest and Northeast.

Mostly expats will release equity from existing properties to buy more rental properties, although 76% of expat landlords with more than 2 properties plan to fund purchases this way.

Expats see the value using a broker

Brokers continue to dominate the market – almost 73% of expats used a mortgage broker or intermediary to arrange their last BTL mortgage. Just a fifth went direct to a lender.

Expats with 2 to 3 properties or more were the most likely to use brokers as they have seen the benefits in the past.

This would confirm the increasing professionalisation of the expat buy to let market meaning landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.

Recent rate reductions across the expat buy to let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.

Can we help?

If you wish to review your current or future mortgage planning do call.  One of our fully qualified independent advisers. We look forward to helping you.

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Expat buy-to-let Investors Increase

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Expat buy-to-let investors increase again. This is a growth area for expat investors as more people see the buy-to-let and holiday let market as a sound option for the future.

Traditional forms of investment such as banks and building societies are still producing poor returns so investors are looking elsewhere.

The house rental market in the UK is very buoyant. Therefore people are trying to get onto the property ladder find it more difficult due to rising house prices.

The demand for good rental property has increased over the last 12 months and would seem to be continuing.

Expat Buy-to-let Holiday hotspots

The areas in the UK where holiday let rental growth was fastest in the first six months of 2024 were: South of England (+18.3%) Cornwall (+14.5%) Devon (+9.9%)
The rise in rental income is being boosted by international and domestic visiting looking for short-term stays in popular UK holiday destinations.

There were a record number of visits to the UK in 2023. And over (37m) and overseas visitors contributed more £22bn to the UK economy.

The number of overseas visitors increased 4% in the first three months of 2024 (compared to the same period in 2023) and the amount they spent increased 11%.

The weak pound and Brexit issues are persuading millions of Britons to remain in the UK this summer and attracting more overseas visitors to the UK.

The strength of the UK tourist industry is paying dividends for expat holiday property owners in abundance.

Can we assist?

As an expat If you are looking for a new or re-mortgage do get in contact. One of our qualified independent advisers will be happy to help.