Holiday Let Mortgages. Weaker pound encourages expats to the holiday let market.
New research reveals that expats and foreign nationals are snapping up UK property, while the pound is weak, and prices remain affordable outside London and the Southeast.
The new figures show that there has been a 23% year on year increase in expats and foreign nationals investing in UK property. These buyers are investing in both buy-to-lets and Holiday lets.
The research also reveals that in 2023, 60% of expats and foreign nationals buying property in the UK, opted for the Manchester area, while 25% choose Birmingham.
However, London has seen a 60% drop in buyers, this is the result of high property prices and poor rental yields, compared with other regions of the UK.
What may surprise many is that in real terms, property prices in the UK have fallen compared with a decade ago and there is a huge North-South divide. In London, the average property value has risen by nearly 70% in 10 years, whereas some other areas have fallen as much as 40% in real terms.
This growth in investors is partly down to the availability of a wider selection of mortgages designed for working expats and foreign nationals.
Investors are also attracted by the UK’s robust legal system for property acquisition, which makes it one of the easiest places in the world to buy property.
Can we help?
If you would like to know more about the range of mortgages available to expats, both new and re-mortgage please do make contact. We have a fully experienced and qualified independent team waiting to assist you.

Expat holiday Let Mortgages on the up in 2023.

There’s been a big increase in choice available to expat landlords wanting to enter the holiday let sector.

Indeed, the number of mortgage options for borrowers looking at holiday lets have more than doubled since August 2022.

More lenders have entered the market – there are now 25 different brands versus 14 in August 2022.

It’s positive to see a rise in expat holiday let product choice for landlords over the past few months, but the market is still relatively niche. 

As the demand for staycations remains evident, it would not be too surprising to see more growth in this market in the months to come. In August 2022 only 6 lenders were offering a buy to let mortgage available to holiday let, whereas today there are many more options to the expat investor.

At this point in time, its evident expat landlords are taking advantage of the opportunity to earn an income through holiday lets.

Research is vital before deciding.  

Undertaking thorough research into popular locations, weighing up tax benefits, reading up on rules regarding residency periods and other potential expenses outside of utility bills can feel daunting, so seeking advice before entering an arrangement is wise.

The number of holiday let companies set up, chiefly by expat landlords, between January and June this year has increased of 60% versus the whole of 2022 and 119% more than in 2019 according to experts.

Help required?

Please do get in touch and one of our expert independent advisers will be happy to assist.

Expat buy-to-let market strengthens.

Times are hard for first time buyers at present which has strengthened the buy-to-let market even more.

Young couples and first-time buyers looking to join the property ladder could be in for a very long wait. Figures just released this week are showing that a combined salary of £48500 is required on average to enter the property market.

So, what is required these days to buy a new property is almost twice the UK average wage of £25000 per annum and as most people will know that is very difficult.

As a result of all this many couples are turning to the rental market for housing, and this is providing a boost in demand for landlords and buy-to-let investors.

This in turn is creating a shortage of suitable properties coming onto the market especially in the London and Southeast.

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?

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

Above are just some of the reasons why expats are considering a buy-to-let investment. If you are thinking of entering this market, you should always seek professional independent advice on the types of mortgages available.

You will generally need a deposit of at least 25% this varies from lender to lender but the bigger the deposit the better the deal.

Mortgage assistance?

 If you are contemplating entering this market or require assistance with a re-mortgage, please do contact us. We have experienced independent advisers who will find the correct deal for you.

Expat landlords will be confident.

It has been an extremely hard year for landlords up and down the UK and those living abroad.

The good news is that, despite all the recent changes rewards for landlords can still be exceptionally good.

Demand for good quality rental property continues to rise year on year due to prospective first-time buyers not being able to get onto the so called “property ladder”.

Rents are at an all-time high and will rise later this year if the experts are correct.

Expat landlords remain confident that the future is good, and they have every right to do so as property in the UK continues to increase in value consistently.

Last year alone the property owners in the UK saw their investment rise between 3-6% and you simply cannot earn this if your money is invested in a high street bank.

Expats re-mortgaging to secure the future.

Expat re-mortgaging levels have soared to an eight-year high in July as borrowers take advantage of lower monthly repayments the latest figures have revealed.

The value of re-mortgaging fell due to a drop in the average loan size, but with overall mortgage activity down it still accounted for two-fifths of total lending in July this year.

Expats who have not reviewed their current mortgage deal recently would be well advised to do so as rates are expected to rise in the future.

Help required?

If you would like to review your current mortgage, please do make contact and one of our fully experienced independent advisers will be happy to assist.

 

 

UK Property Growth. Experts believe UK property values will rise between 3% & 6% across the UK next year according to figures released by one of the major high street mortgage lenders.

If these figures are achieved it will reverse the current decline of this year, the report also states increases in values could be stifled by the possibility of further cost of living increases.

As an expat with property in the UK if you compare this annual growth to what could be achieve from an investment in any high street bank, property looks a very good bet indeed.

Interestingly the report states they expect growth to slow slightly more in the London area than elsewhere. It is likely properties in the North of the country will see the largest growth due to their current affordability.

Property is still in short supply.

 There has been and still is a shortage of supply which constrains activity in the housing market and levels of house building remain lower than years gone by.

It is believed due to the shortage of property available that house prices will remain stable for the foreseeable future which spells good news for expats with property in the UK.

 Need some help?

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