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Overseas Investors Should Take Advantage Of UK Property Prices

by Jim ONeil on August 31, 2011

in Mortgages

UK properties have long been some of the most expensive in Europe. First-time home buyers from across the pond had major problems getting home loans for these. This is no longer the case, as the Council of Mortgage Lenders reports that the FY2011 gross mortgage decline has caused prospects to be better than ever.

The CML bases its estimates on a sample of UK lenders who hold loans for approximately 80 percent of the mortgage market. A wider range of property segments are being offered to investment property buyers and expatriates. These individuals can take advantage of buy-to-let programs in London and destinations popular with holiday-goers.

Let mortgages enable overseas investors to purchase a high-priced home or multiple properties and use rental income to help pay mortgage and maintenance expenses. Expatriate buyers, foreign nationals, and UK residents are entitled to special programs under the Shorthold Tenancy Act when they use properties for commercial or personal letting. For cross-collateral investment mortgages, up to 100 percent of financing may be used for purchases on several properties.

Foreign investors often have trouble getting loans bank provided but buy-to-let mortgages are more flexible. When properties are not listed as the primary residence, they are not regulated by the Financial Services Authority. Buy to let loans feature rate indexes of just 1.5 to three percent over the UK base rate or the Libor rate. Outstanding loan to value ratio may be up to 75 percent and terms up to 25 years are available.

Included in the payoff options for these cheap loans is currency exchange in accordance with the home income rate. Right now, foreign buyers can find UK properties ranging from small apartments to large country estates prime for property investment. With record low loans APR and various financing options, they may be able to afford the UK home of their dreams.

naveeda khawaja

looking for a loan and motgage ….would not mind a counyry estate too


UK mortgages were most popular in October than any other month due to the historic low rates on offer.

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