Skipton International has passed £100 million of lending to British expats around the world, after under two years after launching UK buy-to-let mortgages.
The Channel island-registered bank launched expat mortgages in 2014 as a response to the difficulties British expat customers faced obtaining a mortgage on UK investment properties and has now completed over 500 mortgages.
Earlier this year Skipton opened up its mortgages to self-employed applicants and expanded its eligible country list.
Jim Coupe, managing director of Skipton International, said: “Our buy-to-let mortgages have been very popular with British expats around the world. In the past year alone we have seen demand grow hugely, especially from expats in Europe and from the Gulf region.
“British expats choose to invest in UK property for many reasons, however, for our clients, long term investment potential is a very significant factor.”
In a survey by Skipton International earlier this year, 35% of expats surveyed cited long term investment as their main reason for investing in UK buy-to-let. Other reasons included pension planning (19%), a desire to remain invested in UK property (12%), rental income, and difficulties or reluctance to buy in their country of residence (both 10%).
The survey also found that 87% of overseas buy-to-let investors expect their rental income to increase or stay the same for the next 12 months, while 70% of investors expect the value of their property to increase over the next 12 months.
Coupe added: ”There have been a few changes for overseas landlords over the past year such as the stamp duty levy on buy-to-let properties, and the removal of interest rate relief for landlords. However, the UK has continued to prove to be an attractive location for overseas investors, and as increasing demand for our mortgages shows, the vast majority of expats are still confident about investing in UK buy-to-let.”
