Good Investment Returns. Expat UK buy-to-let’s still offer solid 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.

 A special report on the buy-to-let market looks at the macro and micro economic environment for buy-to-let investors and the factors that are likely to influence landlords investment choices over the coming years. It also highlights the need for a flexible and competitive buy-to-let mortgage market.

This is to facilitate continuing investment in a sector of the housing market that has grown in significance as home ownership has declined and demand for good quality rental residential property has increased.

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%.

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 a new or re-mortgage, please do make contact and one of our independent advisers will be happy to assist.

Expat Property Investment buy-to-let investors on the increase in 2023.

This is still a growth area for investors as more expats see the buy-to-let market as a sound option for the future especially with property prices reducing nationwide.

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

The demand for good rental property has increased over the last 12 months due to the cost-of-living crisis and other factors.

Experts expected the buy-to-let market to decrease, and it did after all the new regulations were announced but that trend has now been completely reversed.

Expats would be wise to research the area of purchase thoroughly, make sure the long-term future has prospects in the areas listed below.

Ways to be a successful Expat investor.

1. Select the type of tenant you are targeting this could be a young couple or single person in a professional career.

1. Make sure when selecting a property for buy-to-let it is in an area which fits your target tenant. Is it close to schools, shops, and local businesses for example all these are important factors when selecting your property?

1. Selecting the correct buy-to-let mortgage to fit your long-term planning. Do you want a fixed rate or a tracker or indeed any other product that is on offer? It is very important to seek professional advice when it comes to choosing your mortgage.

Need some help?

Please make contact and one of our expert independent mortgage advisers will be pleased to assist.

Expat landlord, be sure to check your mortgage deal before it’s too late!

The latest data and analysis highlighted failing to switch mortgage and lapsing onto their lender’s Standard Variable Rate (SVR) has seen the average landlord hit with £2600 a year in extra interest.

According to the study, which looked at 16 major UK lenders, analysed the jump in interest charges from each provider’s best two-year fixed rate deal to their associated SVR, which a borrower is typically transferred to once their introductory period comes to an end.

As of October this year, the average landlord slipping onto their lenders’ SVR after the initial two-year fix faced an extra £2,664 a year in interest payments, equating to £212 a month.

Across the UK there are far too many expat borrowers currently on an SVR, who could collectively save £5.3 billion a year by switching!

One reason why an expat borrower may lapse onto an SVR is simply that they weren’t aware that it was time to switch until it was too late.

A mortgage for a expat landlord is likely to be the most expensive monthly commitment and therefore vitally important to be cost effective.

If you are confused with the mortgage plan you have do get independent advice as soon as possible, failure to do so could be costing you thousands.

Help required?

If you would like to discuss your current mortgage or require a new or re-mortgage, please do make contact and one of our qualified independent advisers will be happy to assist.

Expat Property Portfolio. Buy to let market is growing fast again as expats increase holdings.

June 2023 saw the buy to let market rise again, expat applications and completions were up on figures for the same period last year. Investors are without doubt looking to secure new properties.

Figures show existing expat investors are expanding their portfolios especially in the North and Southeast areas. Increased property values don’t seem to be deterring the investor as they see the future sell on value as the key to profitability.

There was also marked increase of new expat investors into the buy to let market.

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 before you proceed.
• Consider protecting your rental income and explore the options.
• Research mortgage options.

These are just some of the important areas for new expat investors to consider, but most important is to get the right mortgage for your needs.

Too often these day’s clients tend to go for the cheapest without doing crucial research into the features of each plan.

Using an independent broker could be a very shrewd move as they will access to the open market. They will also have the experience to advise you on the correct mortgage to meet your needs.

Can we help?

If you require assistance with your mortgage, please CONTACT US or call one of our experienced independent advisers and we will be pleased to assist.

Expats buying property are still looking at buy-to-lets for income and long-term growth.

There has been a marked increase in the number of enquiries from expats into buying-to-lets in the UK a recent report has highlighted.

This activity has increased since the UK left the EEC on 31^st January 2020.

The report from financial intermediaries revealed that 70% of respondents had seen a rise in enquiries 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; due partly to the strength of foreign currency against the pound – attributed to the ‘Brexit effect’ – which has created an investment opportunity.

Following Brexit, the pound has weakened against most major currencies including the dollar and euro. 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.

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.

Like to talk over your needs?

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