yacht crew expat mortgages

Best Mortgage Deal for Expat Landlord

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 £2000 a year in extra interest.

According to the study, which looked at 5 major expat 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 January, this year, the average landlord slipping onto their lenders SVR after the initial two-year fix faced an extra £2,100 a year in interest payments, equating to £175 a month.

A mortgage for an 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.

Expats are using an independent broker more and more.

Expats are now using an independent broker more than ever before to secure their deals whether it be a new or re-mortgage.

A survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

Why independent?

Very simple you will have a much bigger choice of deals as an independent is not tied to any one company.

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.

yacht crew expat mortgages

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.

 

yacht crew expat mortgages

I Need An Expat Mortgage

Who needs an expat mortgage?
Britons living abroad, either temporarily or permanently, 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, perhaps to provide an income in retirement or even to live in upon their return.
Expat holiday buy-to-lets are getting more profitable.
The rise in stay-cationing has fuelled an increase the use of properties as holiday lets. Expats are attracted by the potential returns and keen to diversify their portfolios, existing expat buy-to-let landlords are expanding their portfolios into holiday let, as are would-be investors who dream of owning a holiday cottage that will pay for itself.
As a result, lenders have witnessed a rise in mortgages for holiday let mortgages, i.e., loans for properties that will be rented out on a short-term basis, for at least part of the year to tourists – as a business.
Exchange rates
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 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.
Aside from investors enquiries from individuals looking to buy properties for their families to live in – 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 and one of our fully qualified independent advisers will be happy to assist.