Is the buy-to-let market for expats shrinking?

The very simple and easy answer is NO, you only need to type ‘buy-to-let’ and see that one of the first news articles online is questioning whether the market is ‘dead.’

‘Decline’, ‘is it worth it?’ or ‘doom and gloom’ are other phrases that probably spring to mind. While there’s no denying buy-to-let (BTL) has had its fair share of bumps, it isn’t doing as badly as people think.

Expats are very active in the UK market, both new and existing owners are purchasing without hesitation as the rental market is in great demand.

Last week, UK Finance figures showed that, apart from one anomaly in January this year, expat BTL purchases had risen every month for the past seven months.

In February this year, expat BTL activity was up by 23% compared to February last year.

Horror stories have been completely oversold.

While many sensational headlines have implied a significant drop, in reality, since 2020, gross expat BTL mortgage lending has increased!

Looking underneath gross total lending, there’s no denying there’s been a decline in standard purchase activity, which is what most headlines focus on.

However, with change comes opportunity. More experienced and professional landlords have stayed and upped their game, looking to expand their portfolios.

For example, we have seen a significant increase in limited company landlords and HMOs, as they search for higher yields and good growth at higher LTVs.

Help?

If you would like to know more about a new or re-mortgage, please do make contact and one of our independent advisers will be happy to assist.

Holiday Let Mortgage for UK Expat. Expat benefits of a Holiday Let Property in the UK

As an expat owning a holiday let property in the UK offers a multitude of benefits.Encompassing financial, personal, and community advantages. One of the most compelling reasons to invest in a holiday let is the potential for significant financial returns. With the UK being a popular tourist destination, a well-located holiday property can generate substantial income. Seasonal peaks, such as summer and festive holidays, often see high occupancy rates, which can lead to impressive rental yields.

Tax advantages

Another key benefit is the tax incentives available to holiday let owners. Properties that meet the criteria for a furnished holiday let (FHL) can benefit from tax reliefs not available to long-term rental properties. This includes allowances for mortgage interest, capital gains tax relief, and the ability to claim capital allowances on furniture and fixtures.

Off peak flexibility

On a personal level, owning a holiday let offers flexibility and the opportunity for personal use. Expat investors can enjoy their property during off-peak times, providing a personal retreat while also generating income during peak seasons. This dual benefit allows for the enjoyment of a second home without the full financial burden.

Furthermore, holiday lets can positively impact local communities. They create jobs in areas such as cleaning, maintenance, and property management, supporting local economies. Holidaymakers contribute to the economy by spending in local shops, restaurants, and attractions, fostering a thriving local tourism industry.

Lastly, holiday lets contribute to the preservation and promotion of the UK’s rich heritage and natural beauty. By providing quality accommodation, owners help attract tourists who explore and appreciate the diverse cultural and natural landscapes the UK has to offer. In summary, investing in a holiday let property in the UK presents a rewarding venture with diverse benefits that span financial gains, personal enjoyment, and community support.

Can we help?

Finally if you are looking for an expat new or re-mortgage, please do make contact. One of our fully qualified independent advisers will be happy to assist.

Expat Mortgage Advice. Expat buy-to-let market is stable and increasing.

Firstly The expat buy-to-let mortgage sector has been more resilient. More so than the residential mortgage one during the past six months.

Despite initially pulling deals from the market, mortgage choice has been on a broadly upward trend since October 2024, while the small fall in average rates suggests the market remains competitive and lenders are keen to do business.

Buy-to-let limited company mortgages.

The majority of the expat buy to let purchase transactions made through limited companies. Last year were related to additional property acquisitions, although the figures also include expats selling property they already own personally into a corporate structure.

All transfers of properties from individuals to limited companies must be treated as a new purchase and therefore do not qualify as a re-mortgage.

Best advice – Use an independent specialist broker for mortgage advice.

Expat landlords will know only too well how difficult it is selecting the correct mortgage deal due to the complexity of an expat mortgage. The last 3 years has seen a massive shift towards expats using a professional independent broker to secure the correct mortgage for their needs.

Areas to invest in the UK property market

Where to invest is a question always being asked, recent reports show that Manchester, Hull and the Blackpool areas are currently seeing very good growth. This is all due to reasonable house prices compared with the South of England and an increased demand for rental property.

Can we help?

Finally when you are looking for a new or re-mortgage, please do make contact. One of our independent specialist advisers will be happy to assist.

Expat Buy-to-Let Mortgages. Wise investors are selective!

It is always recommended to be very selective before deciding on what mortgage best suits your needs. With the deals on offer it always pays to look at all the options, as an example a long-fixed rate deal may be very prudent with the fear of more interest rate rise looming.

An independent broker is recommended, and they will point you in the right direction plus save you time and money.

What a broker will do for you to save time and money?

The independent broker will take control of the mortgage process, therefore relieving you of the stress and paperwork. They will be able to deal with the mortgage company supplying the loan and answer any queries they may have, saving you time and money.

Expat buy-to-let market is stable and thriving.

The expat buy-to-let mortgage sector has been more resilient than the residential mortgage one during the past six months.

Despite initially pulling deals from the market, mortgage choice has been on a broadly upward trend since October 2024, while the small fall in average rates suggests the market remains competitive and lenders are keen to do business.

Limited company expat buy-to-let mortgages.

As this area of expat buy-to-lets mortgages grow so has the choices to the borrower. Mortgage providers have not been slow to increase the number of fixed and tracker deals. Also, the charges and interest rates have reduced as popularity has increased which goes to prove lenders are in fierce competition to secure new expat business.

Need some help?

If you need assistance when choosing your next mortgage call one of our experienced independent advisers and we will be pleased to assist.

UK Mortgage For Expat. Expats looking at buy-to-lets for a secure second income

Firstly The report from financial intermediaries revealed that 70% of respondents had seen a rise in enquiries. All from British expats about buy-to-let mortgages for UK property.

These findings reflect the growing demand for buy-to-let mortgages from overseas investors. As such due partly to the strength of foreign currency against the pound.

What seems to be ongoing is investors, including expats, looking for good buying-to-let properties in Britain, but perhaps focusing on lower loan-to-values and using larger deposits to take the various changes into account, as well as adapting their portfolios and business models to maintain their profitability.

Given the strong rental market in the UK, it appears that expats are still keen to keep a foothold on their home property ladder, and whilst the buy-to-let market has faced a number of challenges recently, those taking a long-term view seem undeterred.

Good potential longer term returns

The reason for this optimism is due to the growth in demand for rental property, falling rent arrears and rising rents during the last year.

A recent survey found that 50% of expat landlords had achieved returns of between 6% and 8%. When you think of the returns a high street bank offer on investments these returns seem on paper to be very good indeed.

With rising property prices this meant that almost a third of expat landlords are enjoying rising equity in their property. And with a loan to value ratio of between 30% and 40%.

Home ownership in the UK has fallen to its lowest level for 25 years. With property prices continuing to increase, tenant demand is set to increase during 2015 and beyond.

Like to talk over your needs?

Finally if you are an expat looking for a new or re-mortgage, please do make contact. One of our qualified independent advisers will be happy to help.