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Demand for expat BTL mortgages soars

by: Tim Chen
  • 26/10/2017
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Demand for expat BTL mortgages soars
Demand from expats in search of buy-to-let mortgages to invest in UK properties has soared over the past 12 months, according to the latest research from Liquid Expat Mortgages.

The research showed how enquiries for UK buy-to-let mortgages from overseas investors has increased by 90% compared to 2016. The majority of enquiries have come from expats living in UAE (30%), Hong Kong (15%) and Singapore (10%).

A report by market research and financial consultancy company Finaccord also found that the number of expatriates across the world is at a record level and growth is expected to continue over the next few years. It showed that Saudi Arabia had the most expats with India having the highest rate of citizens expatriating.

Because of a weak pound, “the UK property market is becoming an increasingly attractive investment opportunity for overseas investors,” says Liquid Expat Mortgages – despite the host of regulations brought in by the Prudential Regulation Authority (PRA).


Expat BTL revival

The international mortgage market also saw changes in 2015, when measures to tighten up the largely unregulated market were introduced in the European Union Mortgage Credit Directive (MCD).

Nevertheless, expat BTL mortgages have seen something of a revival according to Moneyfacts. The number of expat buy-to-let products dropped from 137 in October 2015 to 107 in October 2016, but has subsequently jumped up to 191 this October.

Stuart Marshall, managing director of Liquid Expat Mortgages, said: “Over the last decade, very few lenders provided mortgages to expats, but that has changed more recently thanks to the increasing demand from expats looking to invest in UK buy-to-let property.”

“Many expats are keen to keep a foothold in the UK and the yields on BTL properties in the UK are far ahead of those offered by other countries.” Marshall continued: “This increased interest in UK BTL mortgages is in spite of increasing initiatives by the government to dampen BTL purchases, such as the second home Stamp Duty and increasing stress testing for buy-to-let mortgages.”

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