Build a portfolio while overseas

The most significant trend since the launch of Buy-to-Let has been the growth in the number of portfolio landlords. Letting agents and lenders all report that private individuals who made their first property investment through the Buy-to-Let scheme have been attracted almost immediately to the potential of portfolio ownership.

However, the most interesting trend has been the disappearance of the traditional inertia usually found in the mortgage market. New landlords are searching out the most competitive interest rates and mortgage packages. This has come about due to a greater understanding of the potential return on their own capital and the rental income achievable.

As a result, many investor landlords now re-mortgage both to gain more favourable rates and to raise further capital.

The range of investment mortgages has grown along with the scheme and these all take rental income together with the conventional financial factors into account. This has led to a ‘Standard Variable Lettings Rate', equivalent to or very close to ordinary standard variable rates.

As the Buy-to-Let scheme gains maturity, the mortgage lenders have been able to devise and refine mortgage packages to suit most circumstances and to cater for most foreseeable eventualities.

These packages include flexible mortgage accounts to allow for the inevitable void periods between tenancies and a variety of fixed rates covering various periods up to ten years.

There have been changes too for British expatriates and foreign nationals attracted to investment property in the United Kingdom.

The criteria for lending to these categories varies. Some lenders expect foreign nationals to have had an address in the UK for some years. For others, it is simply a question of overcoming the long distance problems of referencing and checking status.

Providing applicants live and work or have a base in countries with an ‘Information Culture' they should be able to satisfy the status criteria needed. There should be little or no problem for British expatriates and the lenders are accustomed to the value of citizens of the European Union, Scandanavia, the United States and Canada.

ARLA agents increasingly are able to provide a property search and acquisition service.