New UK Buy To Let Rules Will Impact Expat Property Buyers – 2017
Key Facts For Expat Buyers in 2017:
- – New expat buy to lending affordability thresholds introduced from January 1st 2017
- – But many expat buy to let projects will still pass the new tests
New rules on UK buy to let lending introduced by the UK’s Prudential Regulation Authority, part of the Bank of England, will limit the amount expat buy to let property investors and landlords can borrow on new mortgages from January 1st 2017.
The new rules are designed to slow the demand for UK buy to let investments by forcing buyers to contribute larger deposits. Lenders will now have to test affordability using notional interest rates of 5.5%, ensuring rental coverage of up to 145% of this figure is achieved. In theory, this could mean a loan of £200,000 will need to be supported by a rental income of up to £1328, but in practice the true figure is likely to be between £1150 and £1328, as there is some scope for manoeuvre on the part of lenders .
In the run up to January 1st, both expat mortgage brokers and banks reported a surge of activity, as buyers sought to beat the deadline. Guy Stephenson, a spokesman for expatriate mortgage brokers Offshoreonline.org noted that “Large numbers of expat clients were pushing to register their mortgage application before the deadline of December 31st to avoid the new rules.”
However, the impact on expat buyers might not be as harsh as on UK resident buy to let investors, who have hitherto enjoyed buy to let mortgage funding rates of at least 80% of the purchase price.
“Expat buyers have always had to contribute at least a 25% deposit”, said Guy Stephenson. “Many lenders insisted on a 35% contribution. At these sorts of levels, the vast majority of expat buy to let projects will pass the new, tougher lending test and still make sense for the buyer, added Stephenson.
Offshoreonline.org recently began marketing new buy to let funding for expatriates from 2.79%.
« Back to News
Latest News
- Zoopla reports number of UK homes for sale at a six-year high, best buyers’ market for years
- Better expat mortgage rates lift property enquiries but poses fixed or variable rate expat mortgage question
- Where next for UK expat mortgage rates?
- Falling UK house prices and steeply rising rental yields spurs expat buy to let enquiries, reports broker
- Great time for US dollar earners and US residents to invest in European real estate
- Good news for expat UK house buyers, as expat mortgage rates start to ease
- Falling house prices, high mortgage rates – should UK expats buy a house now?
- The 5 cheapest cities for first-time buyers
- Why getting a mortgage in France is now so much easier for buyers from the USA than the UK
- Green shoots appearing in UK property market, good news for expat house buyers
- UK Housing asking prices see smallest February increase on record
- Optimistic signs in expat buy to let market as mortgages rates fall and prices stabilise
- Expat UK property investing: Three positive signs, thinks broker
- Expat buy to let market still strong after two rate rises, says broker
- Recovery and strength in the UK housing market for 2022?
- Expat broker optimistic on post Covid UK buy to let housing market
- Broker warns over mortgage payment holidays
- Buying UK buy to let property after lockdown – expats will have the upper hand, thinks broker
- Expat lenders react to keep expat mortgage deal flowing during COVID-19 crisis
- Coronavirus impact on UK housing might be short lived, thinks expat mortgage broker
- Getting a mortgage whilst living abroad or getting a mortgage after you have moved abroad.
- What Happens when my UK Expat Mortgage Expires?
- Buy to let bargains abound, thanks to Brexit effect, thinks broker
- Expats increasingly vulnerable to new build deposit loss
- UK house hunters lead 6% growth in French non-resident property transactions
- Expat Buy to Let Mortgage Rates Cut Again
- Brexit fears give expats the edge, as UK buyers shun property
- Mortgage tax changes in Spain help buyers
- Expat mortgage broker predicts banks will not pass on full Base Rate rise to mortgage holders.
- Falling Expat Mortgage Interest Rates and Weak UK Housing Market Favour Expat Buyers
- UK property beats pensions, says UK official study
- Taxes for UK expat landlords might not be so hard after all
- Why a sinking pound need not scupper your French property dream
- Is it time to add UK university fees to your expat mortgage?
- Resurgent Spanish property market prompts new mortgage launches
- The new landscape for UK property investors – still good value
- New UK Buy To Let Rules Will Impact Expat Property Buyers – 2017
- UK rent rises continue to outstrip inflation, expat buy to let remains popular
- UK Stamp Duty hike not as harsh as first feared for expat property buyers
- Do I qualify for expat or international mortgages?
- Brexit need not harm the expat mortgage market, thinks Offshoreonline
- UK stamp duty changes, capital gains tax changes will impact expat buy to let investors, so start planning your checklist now
- Booming London property rents continue to attract expat buy to let landlords
- New UK Stamp Duty Won’t Dent Appeal of Buy To Let Mortgages For Non UK Residents
- QE spells heaven for overseas property buyers in Europe
- Thinking about buying a house in 2015? For expats, the signs are good
- UK property prices on the up in 2015 good news for expat buyers
- UK Stamp Duty changes – the winners and losers
- French expat euro mortgage rates fall again
- New house price index to make life easier for French euro mortgage house buyers