More enquiries from Asia than ever before
Expat mortgages is seeing a surge in enquiries from Asia, as Hong Kong is identified as the most expensive city for British expatriates to live in.
A recent study carried out found that Hong Kong is now the most expensive city for British workers to reside, closely followed by Tokyo, Zurich, Singapore and then Seoul.
There has been an increase of 72% in mortgage completions for UK buy-to-let mortgages from Hong Kong residents during 2017, compared to the previous year and figures are rising this year.
The survey compares the living costs for expatriates, reviewing 209 cities worldwide and finding that Hong Kong is the most expensive, mainly due to soaring rental costs.
With the most expensive property in the world, expats living in the former British colony struggle to purchase property since the Chinese territory’s government imposed a 15% buyer’s Stamp Duty on foreign sales. This combined with tough loan-to-value mortgage requirements, such as buyers typically having to provide a 40% deposit. This situation has prompted many to look elsewhere for property investment and the UK is without doubt the most popular.
The number of enquiries for expat mortgages from Asia, and in particular Hong Kong, has been steadily rising over the past couple of years. UK property remains an attractive option for those living in countries where buying is simply not an option. Familiarity with the UK market and maintaining a tie with their homeland are all reasons why expatriates are finding comfort with UK property investment.
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