Expats poised to invest in UK property once lockdown ends

The UK buy-to-let market is a popular investment area for expats. Even as much of the world is under lockdown, activity is still going on behind the scenes.

UK property investors living overseas have seen a vast improvement in the expat mortgage market in recent years. While products were once mainly only offered by specialist lenders, these types of mortgages are now more mainstream.

As a result, many mortgage companies who offer these expat mortgage products have had growing numbers of enquiries.

According to Property Hub, this increase in available products is partly thanks George Osborne’s mortgage interest relief changes in 2015. Known as Section 24, the phasing out of certain tax relief available to landlords has led to many choosing to operate through a limited company. For this, a specialist mortgage is needed.

This led to a shrinking demand for straightforward buy-to-let mortgages. Many lenders, therefore, decided to expand their offerings in a bid to compete. This included introducing more expat mortgage products.

Expats ready to snap up UK property

In January of this year, expat mortgage lender Offshoreonline received a record number of enquiries. While activity may be slower now as a result of coronavirus, it seems buyers are still poised for action.

Offshoreonline‘s Guy Stephenson said: “The vast majority of expat buyers of UK buy-to-let property come from parts of the world which have suffered far less from COVID-19, areas such as the Middle East, Singapore and even Hong Kong.

“Buoyed by the success of containing SARS in 2003, Asian governments have deployed tried and tested techniques which have helped them recover quickly. Already we are seeing enquiries coming from Singapore and Hong Kong again.”

According to his comments to Property Wire, he believes those who already have mortgages approved will be keen to push ahead as soon as possible.

Investing in UK property from overseas

The recent fall in sterling means that it’s currently cheaper for international buyers to purchase property in the UK. Expats looking to invest in the UK have to save less for a deposit because they’re getting more sterling for their foreign currency. Plus, as the mortgage repayments will be made in sterling, they work out cheaper too when they revert back to their earning currency.

Expats seeking to buy a rental property will find that as long-distance landlords they can take advantage of specific mortgage products. They can also join HMRC’s non-resident landlord scheme which exempts them from UK income tax. In addition, having a buy-to-let property is a great way of maintaining a UK credit rating. This means securing UK borrowing in the future will be easier.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

aerial-view-uk-houses

STAY AHEAD OF THE MARKET

Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT