This year has seen a record level of expat buy-to-let mortgage approvals as expat landlords look to increase their portfolios. Recent surveys of expat landlords clearly reveal they are in the market to increase their holdings as quickly as possible.
The reasons are numerous for this trend, but it felt within the industry that Brexit has a lot to do with it. The survey revealed that over 50% of current landlords are achieving net returns of between 5% and 8% 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 expats are also seeing the equity within their properties increasing at a very steady 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.
Expat landlords are reaping the rewards of relatively low mortgage interest rates and set up costs which look like rising in the near future. The industry feels that the 1st January 2021 is a key date with the regards to any increases that may be coming.
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 they will be pleased to assist.