property


New range of mortgages for UK expats wanting buy/let opportunities

by Ray Clancy on July 18, 2014

A new range of mortgages aimed at British expats who want to buy and let a property in parts of the UK has been launched.

Skipton International is offering a maximum loan to a value of 75% on residential properties for buy-to-let, but the property must be purchased in England and Wales.

mortgageHOUSE200

The buy-to-let property purchased must be in England or Wales

Applicants will need to be UK expats working abroad in an approved list of countries. The news comes at a time when it can be hard to get a mortgage if you live abroad.

Nigel Pascoe, director of lending at Channel Islands-based Skipton International, said the new products are a natural extension of the offshore bank’s existing mortgage range.

‘Last year, we launched a portfolio of buy-to-let mortgages for Channel Islands’ residents, which have attracted a lot of interest. UK housing has demonstrated long term price inflation and purchasing a property, as an investment, whilst living abroad often makes financial sense,’ he explained.

‘Many people are seeking an alternative pension plan and so we’ve listened to our customers in coming up with this new range. We offer a very personal service and always work hard to ensure potential property owners are able to afford to keep their investment, not just today, but should there be a change in circumstances,’ he pointed out.

‘This means we will look closely at the rental yield as well as the potential customer’s financial circumstances,’ he added.

For example, take a couple living in Germany where the husband works for a large international car manufacturer. At present, they don’t have a property in the UK. Although the husband has some pension plans in place, he’s keen to purchase a house which they can acquire rental income from and which will hopefully appreciate in capital value and provide a good investment for his retirement.

They want to purchase a house in Cardiff for £200,000. To be able to purchase this property through Skipton International with a mortgage of £150,000 (75% LTV), they will need an annual rental of £11,682 per year to cover the mortgage payments. If the rental was lower, a smaller mortgage would be available.

They will also need to put down a deposit of at least 25%, or £50,000, or more if the rent was insufficient to support a loan of 75% LTV). The property will then be rented out.

Prior to purchase, the property value and rental yield will be confirmed by a Skipton International surveyor and confirmation of the husband’s salary will also be needed, written in English.

The restriction on applications applies to expats living in countries which are regarded as unstable or dangerous, such as Afghanistan, Iraq, Iran and Pakistan. But they also apply to Arab countries such as Libya, Morocco, Egypt and Saudi Arabia. South Africa, Turkey, Northern Cyprus and Russia are also on the list.

There are also restrictions on the type of property that can be bought including Grade A and Grade 1 Listed properties, any properties affected by invasive plant species such as knotweed, flats over five floors with no access to a lift, former local authority flats with more than 5 floors or 48 units, studio flats and mezzanine flats.

 

{ 0 comments }

Thumbnail image for New law will allow expats to buy property in Kuwait, but restrictions apply

New law will allow expats to buy property in Kuwait, but restrictions apply

January 8, 2010 property

A new law allowing all expatriates to purchase real estate property in Kuwait for the first time is unlikely to be linked to residency, it is claimed. Changes to law number 74/1979, will mean that expatriates, regardless of nationality can buy one apartment as long as it is not larger than 350 square meters. Currently only Arabs with [...]

Read the full article →
Thumbnail image for Buying property in  Australia

Buying property in Australia

October 4, 2009 property

Australia is one of those unique countries whereby the vast majority of the population is housed in a relatively small part of the vast landscape of the country.  This has therefore led to various short-term swings in property prices, linked very closely to an economy that is dependent on commodity prices. Historically in Australia, the [...]

Read the full article →
Thumbnail image for Buying property in  France

Buying property in France

October 4, 2009 property

Historically, France has been a very popular location for second homes / holiday homes, with well over 70 million tourists a year.  While the majority of overseas or foreign national buyers purchasing property from France have been Expats from the UK , interest from other areas of Europe is starting to pick up.  The country itself [...]

Read the full article →
Thumbnail image for Buying property in Canada

Buying property in Canada

October 4, 2009 property

The Canadian property market is very different to your stereotypical European market, although on further investigation it seems to be a lot simpler.  Generally houses are more spacious with basements the norm – which can often double the floor space of your property.  Not generally seen as a first port of call for relocating your [...]

Read the full article →
Thumbnail image for Buying property in Portugal

Buying property in Portugal

October 4, 2009 property

There are few countries in Europe that have benefited as much as Portugal from the worldwide property boom.  The country has always been very popular with tourists, and very often seems to be a consideration for retired couples looking to relocate overseas.  This has resulted in not only substantial interest in the local property sector, [...]

Read the full article →
Thumbnail image for Buying property in Spain

Buying property in Spain

October 4, 2009 property

The last few years have seen the Spanish property market experiencing something of a boom time, with both foreign and local buyers looking to snap up prime properties. While Spain has a fully developed property market, there are massive regional variations that can often give the wrong impression to those not doing their homework.

Read the full article →
Thumbnail image for Buying property in Italy

Buying property in Italy

October 4, 2009 property

In line with the employment North / South divide, there is a definite difference in the two property markets. The North has the more developed and higher paid employment opportunities, while historically the South has been the area for lower paid manufacturing employment. As the country continues to leave behind the shadows of economical volatility [...]

Read the full article →
Thumbnail image for Buying property in USA

Buying property in USA

October 4, 2009 property

While the United States has always been a home ownership country, where occupier owned homes have always far outweighed rented property, the current level of home ownership (70%) is high by historic standards.  The country has just gone through the tail end of a housing boom that many believe is linked to the stock market [...]

Read the full article →
Thumbnail image for Buying property in New Zealand

Buying property in New Zealand

October 4, 2009 property

Often cast as the poor cousin of neighbouring Australia, New Zealand has more to offer Expats than many would have you believe.  The country is renowned for its geographical isolation with Australia over 2000 km away, and New Caledonia, Fiji and Tonga also substantial distances away form the country.  When you consider the obvious high than [...]

Read the full article →
Thumbnail image for Buying property in Cyprus

Buying property in Cyprus

October 4, 2009 property

While Cyprus has a history of conflict resulting in the permanent UN policed buffer zone down the center of the island, the political and military tensions seem to have lowered since the conflict last flared up in the 1970s.  This new found calm has allowed both areas of the country to improve their offering to [...]

Read the full article →
Thumbnail image for Buying property in the UK

Buying property in the UK

October 4, 2009 property

The UK has much to offer with a multi-cultural society, a history that goes back thousands of years and some of the most beautiful countryside and tourist destinations you could ever hope to visit.  The Island has been involved in many conflicts, with the Romans and Vikings leaving their foot prints on UK society. One [...]

Read the full article →
Thumbnail image for Buying property in Hong Kong

Buying property in Hong Kong

October 4, 2009 property

There have been many changes to Hong Kong over the last decade, with the 1997 agreement to transfer sovereignty of the colony to China the major event of late.  Currently classed as one of two “special administration regions”, Hong Kong has autonomy to create and change its own laws until 2047, although China is currently [...]

Read the full article →