UK expats are capitalising on declining mortgage rates, which have sparked renewed optimism among investors in the property market, according to Liquid Expat Mortgages.
Recent cuts in rates, particularly for 5-year fixed deals, are making the UK housing market increasingly attractive for those living abroad.
Stuart Marshall, CEO of Liquid Expat Mortgages, highlighted the favourable conditions: “For UK expats, 5-year fixed deals are particularly attractive at the moment, offering great rates for potential investors looking to fix.
“However, 2- and 3-year fixed deals are also offering very competitive rates to UK expat investors and might be preferable for those who want to take their chances on rates coming down in the coming years.”
The market’s appeal is further enhanced by a rise in property listings and reduced competition from domestic buyers. This has created an advantageous environment for expat investors, who now face what Marshall describes as a “sweet spot” between affordability and choice.
“Things will continue to progress quickly in the UK expat and foreign national mortgage market,” Marshall said. “Base rate reductions are expected to continue, so would-be UK expat and foreign national investors should keep a close eye on these developments and how they might affect mortgage rates.”
The optimism among UK expats is also reflected in the actions of major lenders, with several high-street banks now offering international buy-to-let mortgages to UK brokers for the first time. This move signals growing confidence in the expat investment market.
Searches for UK properties by overseas buyers have surged, accounting for 11% of all activity in the first half of 2024, up from 6.8% during the same period three years ago. This increase is likely driven by competitive mortgage deals, a slight dip in property prices, and a weaker pound.
Specialist mortgage brokers are playing a key role in this trend, with 80% of expat mortgages now being arranged through independent brokers, up from 62% last year.
