In a new Buy-to-Let mortgage scheme for British expatriates and their spouses,
I asked Nigel about whom this scheme will benefit and how well it would provide opportunities for those living abroad as an investment. He explained, "The new
I enquired as to the eligibility and criteria for acquiring the mortgage and asked him to describe an example of the workings and rental yields of the scheme, based on the purchase of a property worth
As mentioned, you have to be a naturally born British citizen or the spouse.
We require a salary base of at least
The Loan-to-Value we offer is a maximum of 75 per cent and the property must generate sufficient rental income to exceed 12 per cent of a simple interest calculation at 6.49 per cent. This is to ensure affordability.
We offer a variety of repayment terms: Capital and Interest, or Interest only, with a three or five year fixed option, and a five year discount.
For example, if you are a British expat looking to purchase a
I questioned him on the best areas currently in the
His cautionary note on identifying a location for purchase, "Many potential purchasers will have local knowledge of a particular area which will attract them to buying an investment property there. In every case we would recommend that careful research of the local market is undertaken. Online property websites are a useful resource when gauging a market from afar, as too is discussing the market with a variety of agents. Viewing the property is recommended before committing to an investment. We would also suggest that you have a clear idea of your ideal potential tenants in mind as different property types and areas will suit families/students/young professionals etc."
I raised the issue of which regulator the scheme was managed under, how expatriates may be protected and tax implications for expats living in a tax haven such as the
I was curious to know how and where the scheme may be gaining in popularity. Nigel concluded, "We have only just launched this new expat mortgage, and so don't have an extensive customer base to assess a 'typical' customer. However, we are already seeing interest from British expats across the globe. We have built up an excellent reputation in the
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