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.

 

 

 

 

Independent Ex Pat Mortgage Broker. 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.

2023 has seen a large increase of approved mortgage applications compared to the same period last year. These increases show how restrictions are being eased by lenders as they compete for every single bit of business.

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates has receded slightly.

All this positive news is giving the borrower confidence in the longer term.

Expat mortgages are now easier and quicker to complete than ever before.

 The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 2 years.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months, using a specialist independent ex pat mortgage broker.

Like to know more?

If you require help with your new or re-mortgage, please do contact one of our fully qualified independent advisers who will be happy to assist.

 

 

Expat buy to lets are getting more profitable. The rise in staycationing has created 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. 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.

These commercial transactions are not difficult to administer, due to the power of the internet, but like all niche products, they do require a certain level of understanding.

The number of lenders in the expat market is relatively small. Although this is changing. In the past, holiday let mortgages were usually confined to mutual societies. However, in recent years other lenders, including some specialist expat funders, have joined the fray.

So, not the largest selection in the world but certainly enough to find solutions to fit a variety of expat borrowing circumstances.

Recently, there have been reports in the press of landlords turning their buy-to-let property into holiday accommodation.

For the most part, standard buy to let mortgages are designed for use on properties that will be let for a minimum of six months on assured shorthold tenancy agreements (ASTs).

As such, the majority of products do not cater for holiday accommodation. As such expat borrowers risk breaking the terms of the mortgage contract if they let the property out on a short-term basis.

This should not deter expat borrowers, as holiday let terms can actually be far more favourable.

Like to know more?

 Our experienced independent expat advisers are waiting to help you.