uk property holiday let

Expat buy-to-let or Holiday Let?

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Expat buy-to-let or Holiday Let?

The average holiday let generated annual rental income of £25,700 in 2023. This represents more than double the average of £12,130 for residential properties, according to recent figures.

Holiday Let Income.

As such the average holiday let property generates a whopping £1250 a week, almost FIVE times the average weekly rent in the UK. There are now over 170,000 holiday let properties in the UK, with the average income per booking up 7% in the last quarter of 2023.

Holiday hotspots

The areas in the UK where holiday let rental growth was fastest in the last four months of 2023 were:
South of England (+17.3%)
Cornwall (+14.5%)
Devon (+8.9%)

Rental Income Rise.

The rise in rental income is being boosted by international and domestic visiting looking for short-term stays in popular UK holiday destinations.

Overseas Visitors.

There were a record number of visits to the UK in 2023 of over 28 million. Overseas visitors contributed more £22bn to the UK economy. The number of overseas visitors increased 7% in the last three months of 2023 (compared to the same period in 2022) and the amount they spent increased 13%.

The weak pound is 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 holiday property owners in abundance. Landlords have had just about everything thrown at them of late so only time will tell if we see a shift to holiday lettings in the future.

Can we assist?

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

active landlords with uk expat property

Active Expat Landlords

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Active Expat Landlords.

The last twelve months has seen a record number of expat landlords re-mortgaging to release capital and this has been used for numerous reasons including debt consolidation. Current re-mortgaging applications for October and November are again showing large increases on the same period last year.
Confidence remains high within the expat community who have buy-to-lets in the UK. This is without doubt down to the ever-increasing value of good quality properties.
This looks set to continue long into the future. Even with the general uncertainty property values have remained stable and offer good potential long term profits.
Expat buy-to-let mortgages.
The range available includes fixed, tracker and standard deals with very good discounted periods. We would always recommend discussing your needs with an expert independent adviser who has all the up-to-date deals available. This course of action can indeed save you thousands of pounds in the long term. Interest rates remain competitive with some very good longer term fixed deals available.
As an expat If you are looking to enter the buy-to-let market consider these points:
1) Target your tenant – Students, young professionals, or families.
2) Purchase the right sized property – Vast majority of tenants want 1-3 bedrooms.
3) Location – Key to any success, near schools, shops or local businesses.
4) Property – Should be clean well decorated and meets government regulations.
Following these very simple tips will ensure you have maximised your long term potential profitability.
Need help?
If you are looking for assistance with your mortgage or re-mortgage, please do not hesitate to contact us. One of our fully qualified INDEPENDENT expat mortgage advisers who will be happy to help.

london property for expat landlords

Expat Landlords

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Expat Landlords are growing daily!

Recent figures show that an estimated 250,000 expats own property in the UK, the vast majority let their properties out to achieve extra income.

Expat Mortgages For Landlords.

One client of ours we recently spoke to said: “as an expat with 4 rental properties I am returning to the UK for a meeting with my accountant to review the tax laws on buy-to-lets”. “I am also currently reviewing my mortgages with a view to fixing a rate for as long as possible. Also I am taking advice on incorporating”.

Do consider the immediateand medium term future. It would seem to be very good advice if you are an expat landlord to review all aspects of your UK property. Good news is there are still some very good deals to be had which could assist you protecting your profitability.

Things to look at as an Expat Landlord.

Firstly, get in touch with an accountant and see what can be done. Get advice to reduce the effect of the new tax laws. Secondly completely review your current mortgage deal to make absolutely sure the deal you have meets your needs now and the longer term.

It may very well be you currently have the correct mortgage. But it won’t do any harm to check it out. Consider incorporating your properties into a limited company and get professional advice as this will NOT suit all expats.

By just completing these two simple tasks you could very well save yourself thousands of pounds over the next few years.

Need some mortgage advice?

If you wish to review your current mortgage, please do contact us.  Our qualified independent expat mortgage advisers will be pleased to help.

uk property

Expat Investing in UK Property.

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Expat Investing in UK Property.

Rents have risen sharply over the last year and are expected to continue moving upwards. A result of supply and demand pressures persisting.

Annual rental growth is now 13.3%, according to the latest UK Rental Market Report, outpacing earnings growth in all regions and countries of the UK.

The property portal said that average rents have risen by £125 a month over the last year to £1,109.

Rents are rising quickly across all parts of the UK, ranging from 7.6% in the Northeast to almost 18% in London.

Supply shortages

Rents are being pushed up by the severe and chronic undersupply of homes to rent, according to a recent report.

The rental market faces an imbalance of supply and demand that has led to a surge in rents. The stock of homes for rent remains almost half the average compared to the last five years.

At the same time, private landlords continue to sell their homes in the face of significant tax and regulatory changes.

Demand for two-bed flats has risen dramatically which is likely due to rising energy prices. The gas needed to heat a purpose-built flat is 40% lower than that for a three-bed house.

Latest figures clearly show that the chronic undersupply of rental homes shows no sign of changing, which means that rents are expected to continue to grow at above average rates into 2024.

Need some help?

If you are thinking of re-mortgaging or want advice on a new mortgage, please do call or contact and one of our fully qualified advisers who will be happy to assist.

london property uk expats

Expat Wanting to Buy a Property in the UK?

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Expat Wanting to Buy a Property in the UK?

Who needs an expat mortgage and what are the typical reasons?

Britons living abroad, either temporarily or permanently. Expats will need to obtain a mortgage from a lender that has chosen to lend to expats.

Typically, expats are looking to invest in buy-to-let property whilst living overseas. As such perhaps to provide an income in retirement or even to live in upon their return. 

Whilst fluctuating exchange rates can, at times, provide a good opportunity for investors, it is also true to say that many expats earn better salaries abroad. Often much more than they would do here in the UK. A lower cost of living means they have more disposable income and want to invest in UK property.

As an expat you will be aware there are not manty other countries in the world that offer such potentially good long term returns on property as the UK does.

Aside from investors, enquiries from individuals looking to buy properties for their families to live in. They are frequently where children are involved, and the preference is for them to be schooled in the UK.

Selecting a mortgage to suit your needs.

Securing an expat mortgage doesn’t have to be difficult. It is always recommended to get expert professional help. Using a specialist expat broker will without doubt give you the edge as they will be experienced in this type of mortgage process.

Can we help?

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.

uk property deals expat buy to let

Expats UK Property Searches Increase

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Expats UK property searches increase month on month.

Brits living in countries where the currency is pegged to the USA’s, such as Hong Kong have been attracted to investing in property back in their home country.

What is happening is investors, including expats, are still buying-to-let 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. For example, by looking at up-and-coming areas across the UK instead of the more traditional rental hotspots like London.

The property portal found that searches for UK property by overseas buyers have grown steadily over the last 12 months. Expats are actively looking to secure buy-to-lets in the UK as demand and profitability increases.

They now account for 8.2% of all activity on the portal in the last three months of this year, compared to just 3.8% a year ago.

It said most expat investors are keen to capitalise on softening prices and a weaker pound.

More expats are choosing independent broker assistance for mortgages advice.

The number of expat mortgages coming through independent brokers has risen steeply over the last 2 years, this figure now stands at 78% from 64% last year.

There has been a steady increase in mortgages sold by intermediaries to expat buyers and re-mortgagers as the market remains very buoyant indeed.

Assistance required?

If you would like help with your new or re-mortgage, please make contact and one of our independent advisers will be happy to help.

uk property investment when living abroad

Buying Property in the UK When Living Abroad

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Buying Property in the UK when living abroad.

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.

Living abroad and buying a UK flat, apartment or house doesn’t have to be a tedious task, the best way to proceed is to engage an independent expat mortgage adviser as they will have access to all deals available. They also will be local and able to deal with question as they arise.

 As an expat thinking of entering the Buy-to-Let market.

More and more expat investors are considering entering this market for various reasons. What can a buy-to-let investment offer you? Buying property in the UK when livinga broad may be easier to finance than you realise.

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

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%.

Expat buy-to-let mortgages play a vital role in supporting housing supply in the private rented sector, with the market representing nearly 13% of new UK mortgage lending.

Can we help?

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

Are Expat Mortgage Rates Reducing ?

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Are Expat Mortgage Rates Reducing ?

The UK expat buy-to-let market “may have turned an important corner” with major lenders launching lower rates for expat mortgages.

We are now seeing at least one lender offering UK mortgages for expats at a margin of less than 1.5% over the UK base rate. It is another signal that markets are returning to a new normal, with the UK base rate now expected to remain at a higher level than was the case since the financial crash of 2008/2009.

The inevitable result of higher UK base rates is that lenders are having to trim margins to remain competitive.

House prices have remained solid and seem to be recovering in many parts of the UK despite steeply rising mortgage rates, the supply of homes for sale has been outstripped by demand for property.

The expat mortgage market has grown significantly over the last 10 years and lenders are very keen to secure your business.

With the correct advice and support securing an expat mortgage can be a very simple process.

Getting this support is a vital component in the chain of events, due to the applicant’s location, as it is likely he or she will be living abroad.

Using an Independent broker registered with the FSA in the UK you’ll enjoy a number of advantages compare to “going it alone”.

These include:

  • Choice of deals currently available
  • Choice of lenders
  • Expert advice
  • Fully qualified adviser
  • FSA regulated.

Selecting the correct deal for you can save a large amount of money in the long term.

Help needed??  

If you need expat mortgage advice, please do make contact and one of our independent advisers will be happy to help.

yacht crew expat mortgages

Positive Expat Market

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Positive Expat Market. The Expat buy-to-lets remain positive.

 The expat buy-to-let market has remained stable as more people turn to the private rented sector out of both choice and need.

This news is keeping expat landlords on a very positive footing for the long-term future, research shows more young couples will have to rent due to spiralling house prices.

The debate amongst expat landlords goes on but the latest research points very firmly to a stable and well performing market. Despite the uncertainty around the economy the overwhelming message coming out of the private rented sector is positive and encouraging.

Rents continue to increase at a steady pace which has been the story of 2023, and it really looks like continuing into 2024 and beyond.

Many expat landlords in the private sector are seeking advice on how to proceed with all the new tax changes. Again, the news we are hearing is very positive indeed and it seems the Limited company route is favourite to the majority.

Expat buy-to-let limited company.

Half a decade ago, there would have been few in the mortgage market who might have predicted limited company expat buy-to-let as one of the major growth areas in the years ahead.

But that’s exactly what has happened in the expat buy-to-let sector. The market has shifted to accommodate how expat landlords might wish to take their portfolios forward and how they can try and secure the mortgage interest tax relief which has been steadily cut for those holding properties in their own names.

Can we help?

 If you would like assistance with your expat buy-to-let mortgage, please do contact or call one of our expert independent advisers. We have years of experience in this market and look forward to being of assistance to you.

 

mortgage calculator expat mortgages uk homes

Expat Rental Advice

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Expat Rental Advice. As an expat and therefore not residing in the UK Investing in property whether it’s your first investment or your fifth can give you goose bumps at any time of year.

Whilst property prices are falling, it can be all too easy to get swept up by recent articles of new property trends amongst renters.

As an expat the key to any successful investment is ensuring you have a sound strategy. For property, this means a combination of fundamental elements that theoretically add up to you finding a property that will deliver growth and 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 an expat landlord is experiencing a long void period. If you committed to your sound strategy, you will have hopefully purchased a good quality property in a high demand area which should help to reduce the risk of a lengthy void period. Another way to help minimise void periods is to keep up to date with the market in that area – in terms of cost and also what you’re offering as a landlord.

Consider the amenities that attract tenants and, importantly what your property could offer to ensure its ripe for the picking when it comes to tenant choice.

Reduce risk as much as possible.

In other words, make sure you have contents insurance, always put your tenant’s deposit into a deposit protection scheme and have a sizeable pot of cash set aside to cover unexpected maintenance costs. Contact Us for all your expat mortgage advice.