Expats increasing their portfolios rapidly
September this year has seen a record level of expat buy-to-let mortgage approvals as landlords look to increase their portfolios. Our recent survey of expat landlords clearly reveals they are in the market to increase their holdings as quickly as possible. The reasons are numerous for this trend, but landlords are very encouraged by the demand for rental property plus rents are increasing annually.
The survey revealed that over 50% of current expat landlords are achieving net returns of between 6.5% and 8.75% on their current portfolios. This is obviously a much larger return than any traditional savings account can currently offer.
With house values still on the increase year on year landlords are also seeing the equity within their properties increasing at a very good rate. So with all this positivity it is little wonder buy-to-let mortgages are increasing rapidly.
Home ownership in the UK has fallen to its lowest level for over 25 years which may well shock some people. When you look at the overall cost of buying a property in the UK perhaps it is not quite so surprising.
Buy-to-let mortgages
UK and expat landlords are reaping the rewards of lower mortgage interest rates and set up fees. With so much competition in the marketplace lenders are being forced to make very attractive offers to lure clients towards their product.
We always recommend being very selective before deciding on what mortgage best suits your needs. With so many deals on offer it always pays to look at all the options, for example a long-fixed rate deal may be very prudent with the fear of a rate rise looming.
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.