Skipton expat customers pour £100m into BTL

The Channel island-registered lender launched Expat Mortgages in 2014 to combat the difficulties British expat customers faced in obtaining mortgages for UK investment properties. It has completed over 500 mortgages since then.

Jim Coupe, managing director for Skipton International, said demand for the product is increasing. “Our buy-to-let mortgages have been very popular with British expats around the world. In the past year alone we have seen demand grow hugely, especially from expats in Europe and from the Gulf region.”

Earlier this year Skipton extended its expat mortgage offer to self-employed applicants and expanded its eligible country list.

Coupe added: “British expats choose to invest in UK property for many reasons, however, for our clients, long term investment potential is a very significant factor.”

This is backed by a survey the bank conducted earlier this year, in which 35% of expats surveyed cited long term investment as their main reason for investing in UK buy to let. Other reasons included pension planning (19%), a desire to remain invested in UK property (12%), rental income, and difficulties or reluctance to buy in their country of residence (both 10%).

Expat investors have confidence in the UK market, with 87% expecting their rental income to increase or stay the same over the next 12 months, and 70% anticipating the value of their property to rise over the same period.

Coupe said regulatory change is not acting as a deterrent. “There have been a few changes for overseas landlords over the past year such as the stamp duty levy on buy-to-let properties, and the removal of interest rate relief for landlords. However, the UK has continued to prove to be an attractive location for overseas investors, and as increasing demand for our mortgages shows, the vast majority of expats are still confident about investing in UK buy to let.”