UK Mortgage for Expat

Expats looking at buy-to-lets for a secure second income

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.

What seems to be ongoing is investors, including expats, looking for good buying-to-let properties 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.

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.

Good potential longer term returns

The reason for this optimism is due to the growth in demand for rental property, falling rent arrears and rising rents during the last year.

A recent survey found that 50% of expat landlords had achieved returns of between 6% and 8%. When you think of the returns a high street bank offer on investments these returns seem on paper to be very good indeed.

With rising property prices this meant that almost a third of expat landlords are enjoying rising equity in their property, with a loan to value ratio of between 30% and 40%.

Home ownership in the UK has fallen to its lowest level for 25 years and with property prices continuing to increase, tenant demand is set to increase during 2015 and beyond.

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.