This change is expected to reduce the cost and administrative burden of servicing mortgage debt from overseas, and address challenges presented by cross-border transfers and currency conversion.
Further, landlords who are based overseas with rental properties in the UK can use their rental income to meet interest payments like they do with other property-related expenses, which should make the process smoother and more efficient, RAW Capital Partners said.
According to broker feedback, this could be helpful to investors with UK bank accounts and limited company structures whose rental income is received and managed in the UK.
Bulent Kandemir, managing director of Intra Private Finance, said: “We welcome the new flexibility shown by RAW Capital Partners in enabling payments to be received from a UK bank account. Some clients prefer to make payments directly from the country where their funds originate.
“However, others have purchased their properties through a UK special purpose vehicle limited company and have struggled to make payments, often incurring double or even triple transaction fees. These clients will particularly welcome the ability to avoid sending their rental income abroad only to transfer it back again.”
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Tim Parkes, CEO of RAW Capital Partners, added: “Landlords based overseas often face additional layers of complexity when investing in the UK buy-to-let (BTL) market, particularly around day-to-day cash management. This change to our offering is about removing friction and making the experience more consistent with how UK property portfolios are typically run.
“It’s a straightforward improvement that we’ve made based on ongoing feedback from brokers and borrowers, and it’s another example of our continued commitment to refining our proposition around the real-world needs of complex clients.”
