In a positive development for expat property investors, two major lenders have announced significant rate reductions on their expat buy-to-let mortgage products.
Molo Finance, the UK’s first fully digital mortgage lending platform, has reduced rates by up to 25 basis points for expat borrowers. Two and five-year fixed buy-to-let products are now available from 4.99% for capital and interest mortgages and 5.74% for interest-only mortgages, both at a 70% loan-to-value (LTV).
Meanwhile, Foundation Home Loans has introduced price cuts of up to 15 basis points on its expat products within the ‘Solutions by Foundation’ range. Rates for these products now start from 6.64% up to 75% LTV, available with a 2% fee.
These rate reductions are expected to enhance the attractiveness of both lenders’ offerings in the expat mortgage sector. As the market sees increased competition, this move could signal a trend towards more favorable terms for expat investors in UK property.
Inflation is now under the Bank of England’s target of 2%, meaning they may well lower the base rate further within the year. The Bank of England calculates inflation and uses interest rates to either stimulate growth in the economy or to keep it under control, depending on the broader economic climate.
The changes come as the buy-to-let market continues to see strong tenant demand, potentially offering opportunities for expat investors to expand their property portfolios.
For more information on these products or other expat mortgage options, please contact us.