The fall in the pound over the past year or so has made the UK a cheaper location for overseas-based property investors, which is why a growing number of British expats are investing in the UK’s buy-to-let market.
The pound has dropped by almost 15% against the euro in the past 12 months and means that buy-to-let investors based abroad now get more for their money when buying property in Britain, which largely explains why Skipton International has seen a “substantial” increase in enquiries for expat mortgages over the past year.
Nigel Pascoe, director of lending at Skipton International, commented: “We are delighted to have been able to help so many British expats secure UK properties and achieve their investment aims. Capital growth in UK property has been strong over the past few years and buy-to-let remains a very popular long-term investment for British expats.”
To the end of May 2017, Skipton had more than double the value of enquiries for expat mortgages compared to the corresponding period last year. This included a 124% rise from British expats in the United Arab Emirates, a 145% increase from British expats in Switzerland, and a 175% increase from British expats in Hong Kong.
Pascoe added: “Many British expats who had been considering investing in UK property made the most of the devaluation of Sterling to use foreign savings. However, we must attribute the majority of growth to our team and the excellent levels of service they offer all our customers, for mortgages and for offshore savings.
“We have been offering savings accounts to British expats for over 20 years. Since launching our expat mortgages, we have made the process of taking out a mortgage with Skipton as straightforward as possible with many approved in principle by phone or using our online mortgage calculator.”