Expat demand for buy-to-let soaring despite UK tax changes

Added 30th June 2017

The numbers of British expats looking to invest in a buy-to-let property in the UK is booming despite the government’s changes to mortgage relief, Guernsey-headquartered Skipton International has said.

Expat demand for buy-to-let soaring despite UK tax changes

From April this year, the UK began phasing out mortgage interest tax relief on buy-to-let properties by April 2020.

The move will potentially push over 400,000 UK-resident lower-rate tax payers into a higher bracket, as well as impacting on higher rate tax payers. 

This could also hit the UK tax bracket for expats with investment property, says Skipton.

However, since launched its range of buy-to-let mortgages in 2014, the lender has seen demand for its products sky-rocket, writing over £190m (€215m, $246m) of business to expats across 900 mortgages.

In the year to May 2017, the lender revealed it has had more than double the number of enquiries for expat mortgages than during the same period in 2016.

This included a 124% rise in enquires from British expats in the United Arab Emirates, a 118% increase from British expats in Switzerland, and a 162% increase from British expats in Hong Kong.

“There have been a number of measures over the past few years that have affected overseas investors who own UK buy-to-let properties,” said Nigel Pascoe, director of lending, Skipton International.

“Buy-to-let remains a popular long-term investment for British expats and we don’t expect the phasing out of mortgage interest rate relief to change this.”

Tax guide

Skipton has now launched a guide to help expat buy-to-let investors understand how the new changes to mortgage relief will affect them.

In April, the lender unveiled a new three-year fixed rate offshore savings account, promising to pay an interest rate of 1.6% gross per annum.

At the same time, it also launched a new two-year offshore savings bond, which pays 1.4% gross per annum.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.

Features

Why you should care about the German elections

Why you should care about the German elections...

You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While chancellor Merkel is sure to win, the scale of her victory is likely...

Analysis

Profiles

Directories

Canada Life International Limited
Canada Life International...

Canada Life International Canada Life House,...

Tweets

Events

IA Best Practice Adviser Awards Europe 2017
IA Best Practice Adviser Awards Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Europe 2017
IA Future Advisory Forum Europe 2017

Thursday 28 September
The Waldorf Hilton, London

IA Future Advisory Forum Cape Town 2017
IA Future Advisory Forum Cape Town 2017

Thursday 5 October
The Vineyard Hotel, Cape Town

IA Best Practice Adviser Awards South Africa 2017
IA Best Practice Adviser Awards South Africa 2017

Thursday 5 October
The Vineyard Hotel, Cape Town

Sponsored Content

Investment Strategy

OTHER STORIES FROM LAST WORD...