Expat Mortgage Strategy for First time expat landlords. A sound strategy should always be in place.

Investing in property whether it’s your first investment or your fifth can give you goose bumps at any time of year.

The UK rental market is currently booming.

The key to any successful investment is ensuring you have a sound expat mortgage strategy. For property, this means a combination of fundamental elements. These theoretically add up to you finding a property that will deliver growth. As well as provide a regular rental income (if this is a goal), allowing you to passively grow your wealth over time.

These elements are good location, connectivity, amenities, infrastructure, and investment and of course tenant demand which, if you get the first four right, should come naturally.

One of the worst nightmares for any landlord is experiencing a long void period. If you committed to your sound strategy, you will have hopefully purchased a good quality property. Always in a high demand area which should help to reduce the risk of a lengthy void period.

Reduce risks to a minimum

In other words, make sure you have contents insurance. Always put your tenant’s deposit into a deposit protection scheme and have a sum set aside to cover maintenance costs.

Always review your expat mortgage strategy

It is also worth carrying out a regular review of your finances to make sure you aren’t paying out more than you need. Especially on your mortgage payments plus you’re taking advantage of any tax relief available to you.

If you plan to pass on your property as inheritance, make sure you have a solid and tax efficient plan for this too.

Need some Expat Mortgage help?

If you require any assistance with your new or existing mortgage, please do call. One of our fully qualified independent advisers who will be happy to help.

Expat Mortgage Broker

Seek independent advice and make life easier

Many expat borrowers could be missing out on a better mortgage deal by not speaking to an independent adviser.

Almost 70% of EXPAT borrowers who went straight to a lender haven’t re-mortgaged in the last five years, 74% stayed with their current lender because they felt they had a ‘good deal’.

Without seeking independent Expat mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser/broker.

Analysis showed that the mortgage industry still needs to demonstrate the value of independent mortgage advice to expat borrowers.

What does a mortgage broker do for expats?

Essentially, they are there to help expats find the best mortgage deals in the UK. They aim to make that as simple and stress-free as possible, looking at each person’s situation and finding the best product to match their needs.

Survey facts show.

66% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower, and just over a third (34%) thought an independent mortgage adviser was there to support the lender.

It’s a fact that expat borrowers going through an independent mortgage adviser have access to far more advantageous deals than those going direct to the lender.

Expats who used a mortgage adviser were also in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Can we help?

If you are looking for a new expat deal or re-mortgaging, please do make contact and one of our fully independent advisers will be happy to assist.

Mortgage For Student Lets.

More expats are turning to buy-to-let student accommodation

Expat landlords could well be missing out on the blossoming student rental market sector. Expat Landlords may be unaware of the potential returns on offer with a mortgage for student lets.

According to a new report recently released of existing expat landlords over 40% said they were completely unaware of the potential returns this type of letting can produce.

The number of students is rising at a rapid rate and over the next decade, the figure is expected to double. One other very important factor many expat landlords miss is that the UK is becoming a very popular destination for foreign students. As such this again is a very lucrative market.

The 5 main reasons why expats should consider this type of business:

• High yields: Depending on location between 8%-10% net yield is possible.
• Managed & Maintained: Plenty of very good local companies with experience in this type of letting.
• Demand: Rising student levels means there is always a demand for this type of property.
• Shifting priority: Students have shifted since the rise of tuition fees to private shared letting.
• Options open: Any landlord interested in this type of business can invest.

The expat mortgage market can be very complex. Therefore you should seek professional advice as to what product best meets your needs. We have a select number of companies offering very favourable rates. As such these are tailored to suit most needs, including buy to let.

Items you will need to apply for an expat mortgage.

• Deposit available
• Certified proof of address
• Certified ID (Passport)
• Bank statements (Normally 6 months)
• Wage slips (Normally 6 months)
• Certified accounts if self-employed.

These requirements vary from lender to lender. The above is just to give you a guide to help speed up the process.

Can we assist you?

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

Renew Your Expat Mortgage and read our Expat Mortgage Reviews.

Expats need to get the message that re-mortgaging is where significant savings can be made. Especially with rates as they are now.

If you are an expat on a standard rate mortgage, would you like to save upwards of £1500 per year? These savings are of course dependent on the size of mortgage. As such surely it is worth checking.

Research shows that over 50% of all expat borrowers who move to their lender’s standard variable rate after their initial deal terminates do not re-mortgage or product transfer for 3-5 years. 

Also, the report shows a quarter of re-mortgagors said they find the whole re-mortgage process difficult, with 47% saying they didn’t have time to shop around.

Re Mortgage Warning.

A re-mortgage is not always suitable for everybody as your existing deal may well have penalties attached to change within the discounted period. It is always recommended to seek professional help as to what is best advice to suit your needs.

Expats are using specialised independent brokers for speed and efficiency.

About five million UK nationals live overseas. Therefore many are keen to hold on to a property in the UK, or to invest in a buy-to-let. As for a buy-to-let mortgage options are quite restricted. Also in most cases you will need to get a specialist landlord mortgage.

It is possible to secure a standard residential home loan as an expat. But it is tricky to arrange, lenders will want to see evidence that close family are living in the house. Since most expats work abroad and cannot live in two places, for the majority, a buy-to-let is the more appropriate solution.

It can be a difficult process to secure a mortgage when clients are overseas. Especially with the time difference and tighter lending criteria.

Using a specialist Expat independent mortgage broker will certainly make the process far less stressful and time consuming.

Can we help?

If you are looking to renew your expat mortgage or re-mortgage, please do make contact and one of our independent advisers will be happy to assist.

 

UK Expat Landlords – Demand is high for quality rental properties.

Demand for quality rental property continues to grow in the UK, this year alone it’s grown by 7% against figures issued for last year.

The problem is now that supply of properties has fallen by 16% in the same period. On average for every quality property available to rent in a Town/City location 3 people are in competition for the occupancy.

As you can see this is causing great concern for prospective tenants. This applies across the whole of the UK, especially in the major Town/City areas.

On top of all these disturbing figures it is expected that the demand for rental properties is likely to increase well into 2025 and beyond. Although there has been a significant increase in first time buyers securing a property many still cannot raise the necessary deposit.

All this is very encouraging news for UK expat landlords. They are very unlikely to have good properties vacant at any time or not for long if they do.

Plus, with so much demand the long-term future looks very encouraging. Expat landlords have had so many setbacks of late, this news will be very welcome indeed.

Existing expat landlords are still seeking to increase their portfolios. Also interest rates still offer the opportunity for good long-term returns.

Many estate agents across the country are reporting a high demand for the “lettable property”. One agent in the Manchester area commented “demand is far out stripping supply at present and consequently rents are being driven upwards”.

Need assistance with your mortgage?

Our professional independent advisers are very experienced. Dealing with all types of expat buy-to-let mortgages both single and multiple. Contact Us today to find out how we can help without obligation.