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Expat Mortgage Brokers for UK Property

Expat Mortgage Brokers for UK Property

Old Mar 23rd 2016, 3:08 pm
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Default Expat Mortgage Brokers for UK Property

Hi,

does anyone have any experience of arranging a mortgage for a UK property (more than likely a buy-to-let and possibly also a re-mortgage of another) whilst in Aus?

There seems to be a limited number of lenders for expat mortgages, especially for buy-to-let, but am now wondering if it might be better to try and find a specialist broker who may have access to more.

Cheers
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Old Mar 23rd 2016, 3:12 pm
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by chrisall
Hi,

does anyone have any experience of arranging a mortgage for a UK property (more than likely a buy-to-let and possibly also a re-mortgage of another) whilst in Aus?

There seems to be a limited number of lenders for expat mortgages, especially for buy-to-let, but am now wondering if it might be better to try and find a specialist broker who may have access to more.

Cheers
Not too sure about brokers, but you do realise that the laws on buy-to-let have changed very recently or are about o, and also the rules on taxation of them, so it might be a good idea, if you haven't already done so, to familiarise yourself with them. A number of UK owners of rental properties have already said that with the new regulations they are going to have to sell up.
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Old Mar 23rd 2016, 8:30 pm
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Default Re: Expat Mortgage Brokers for UK Property

Yep. There are some tax changes coming to the UK for buy to let.

In my efforts for this, its proved near impossible. The brokers can only find loans with massive interest rates, that require massive deposits. But the real killer is your income. They want you to be earning the value of the property in a single year. And when all that is said and done, and if they are the rules and you can meet them, then you wouldn't need a mortgage in the first place.
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Old Mar 23rd 2016, 9:26 pm
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by mikelincs
Not too sure about brokers, but you do realise that the laws on buy-to-let have changed very recently or are about o, and also the rules on taxation of them, so it might be a good idea, if you haven't already done so, to familiarise yourself with them. A number of UK owners of rental properties have already said that with the new regulations they are going to have to sell up.
Really? The main change to taxation is new stamp duty regulations, which would not effect existing landlords. The other change is that mortgage interest will only be allowable at the basic rate. An unprecedented step in accounting and taxation, but I am still not sure it would lead to landlords selling up in droves. But yes certainly, this government has it in for the private landlord and who knows what will come next.
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Old Mar 23rd 2016, 11:45 pm
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Beoz
Yep. There are some tax changes coming to the UK for buy to let.

In my efforts for this, its proved near impossible. The brokers can only find loans with massive interest rates, that require massive deposits. But the real killer is your income. They want you to be earning the value of the property in a single year. And when all that is said and done, and if they are the rules and you can meet them, then you wouldn't need a mortgage in the first place.

This has been my experience as well. Euro mortgages are much easier to arrange however. Maybe buy to let in Paris instead?


S
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Old Mar 24th 2016, 12:30 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Bermudashorts
Really? The main change to taxation is new stamp duty regulations, which would not effect existing landlords. The other change is that mortgage interest will only be allowable at the basic rate. An unprecedented step in accounting and taxation, but I am still not sure it would lead to landlords selling up in droves. But yes certainly, this government has it in for the private landlord and who knows what will come next.
From what I can see, and I could be wrong, the stamp duty increases would only affect those buying a second property. So if the OP has never bought a property before this may not affect them.

In addition, if the OP is an expat, and earns their income abroad then the tax changes on interest will have no effect.

I'm no accountant, correct me if I'm wrong.
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Old Mar 24th 2016, 12:37 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Swerv-o
This has been my experience as well. Euro mortgages are much easier to arrange however. Maybe buy to let in Paris instead?

S
Take the mortgage out of the equation. 10% yield right there.

1 bedroom flat for sale in Liddle Road, Fenham,, NE4
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Old Mar 24th 2016, 12:39 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Beoz
Take the mortgage out of the equation. 10% yield right there.

1 bedroom flat for sale in Liddle Road, Fenham,, NE4

That's a lot better than my worthless Super - and I think I could probably scrape the cash together for that as well...

Leasehold I assume?


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Old Mar 24th 2016, 12:47 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Swerv-o
That's a lot better than my worthless Super - and I think I could probably scrape the cash together for that as well...

Leasehold I assume?

S
I share all your thoughts Swervo

Don't know about the leasehold. I just looked at the buying cost v the annual rent received.
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Old Mar 24th 2016, 12:59 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Beoz
I share all your thoughts Swervo

Don't know about the leasehold. I just looked at the buying cost v the annual rent received.

I've been looking at this as well. I like the fact that Negative Gearing is available on overseas investment properties, despite the fact that it makes absolutely no sense whatsoever.

A second property would be a good investment I think - just not in Australia.

I did some research into Euro Mortgages back along when I was looking at French properties. I've put this on hold now, until after the referendum has finished - I really don't want to end up with a house I'm not allowed to live in!

France Home Finance

It was a lot better for expats looking to obtain a mortgage, though the minimum mortgage amount was €100,000.


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Old Mar 24th 2016, 1:49 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Swerv-o
I've been looking at this as well. I like the fact that Negative Gearing is available on overseas investment properties, despite the fact that it makes absolutely no sense whatsoever.

A second property would be a good investment I think - just not in Australia.

I did some research into Euro Mortgages back along when I was looking at French properties. I've put this on hold now, until after the referendum has finished - I really don't want to end up with a house I'm not allowed to live in!

France Home Finance

It was a lot better for expats looking to obtain a mortgage, though the minimum mortgage amount was €100,000.


S
Cheers for that. Many years ago I thought about buy a tiny apartment in Meribel or somewhere in the Alps, but then I discovered Austria and it became quickly evident that no ever needs to ski in France and put up with the crap hospitality, run down infrastructure and expensive beer when you have Austria.
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Old Mar 24th 2016, 1:55 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Beoz
From what I can see, and I could be wrong, the stamp duty increases would only affect those buying a second property. So if the OP has never bought a property before this may not affect them.

In addition, if the OP is an expat, and earns their income abroad then the tax changes on interest will have no effect.

I'm no accountant, correct me if I'm wrong.
Correct, the new rule on mortgage interest might not effect the overseas investor as their profits could be under the annual UK PA and their country of residence, where profits will also be declared, will no doubt have a different rule.
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Old Mar 24th 2016, 2:52 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Bermudashorts
Correct, the new rule on mortgage interest might not effect the overseas investor as their profits could be under the annual UK PA and their country of residence, where profits will also be declared, will no doubt have a different rule.

What are the new rules BS? In a nutshell for laypeople...


S
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Old Mar 24th 2016, 7:42 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Swerv-o
What are the new rules BS? In a nutshell for laypeople...


S
In a nutshell it is that mortgage interest relief can only be obtained at the basic rate of interest. So a higher rate tax payer is paying tax on revenue at the higher rate but can only offset this expense at basic rate.

So only effects higher rate tax payers and only to the tune of mortgage interest, hence I questioned earlier on the thread whether landlords really would be selling up left right and centre. Having said that it is extraordinary to have income and expenses of the same business taxed differently, normally tax is paid on profit.
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Old Mar 24th 2016, 8:08 am
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Default Re: Expat Mortgage Brokers for UK Property

Originally Posted by Bermudashorts
In a nutshell it is that mortgage interest relief can only be obtained at the basic rate of interest. So a higher rate tax payer is paying tax on revenue at the higher rate but can only offset this expense at basic rate.

So only effects higher rate tax payers and only to the tune of mortgage interest, hence I questioned earlier on the thread whether landlords really would be selling up left right and centre. Having said that it is extraordinary to have income and expenses of the same business taxed differently, normally tax is paid on profit.
Can you translate that? What is basic interest? Any chance of an example with figures?
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