RetireJapan

Wales4rugbyWC19 wrote: ↑Thu Apr 07, 2022 11:03 pm

jonnyd wrote: ↑Thu Apr 07, 2022 11:35 am ok that's why, I think I could get similar rates if I did variable, but interest rates are going up for sure, inflation is very high at moment, so I'm scared and going fixed. Liquid expat was recommended to me by someone who has done 5 buy to lets and although I've never used a broker before they were very fast. Whether they got me the best deal or not I don't know. Was also going to do interest only, but not now rates are going up.

Buy to lets have become a lot less financially favourable for UK expats over the last five years. Stamp duty has gone up a lot, there is even a special stamp duty level if you are not residing in the UK and you cannot claim mortgage interest tax relief as business expense. Although you still get the income tax allowance which with one house should keep your rent tax free.

I have to agree. I applied for a second buy to let mortgage and I was going to put a 25% deposit down, and have collateral from my first property.
We told the broker our earnings for the past couple of years, and then they said NO. No reason. It may have been the Uk budget changes, second home law changes, both of us self employed, or the corona virus.But it has become more difficult from what I'm hearing.

Yes, I wouldn't do a buy to let just for the spread. But I'm just buying a place and putting a renter in to pay off the mortgage so in 20 years I will have a house that someone else bought me. I'm doing capital repayment. I was going to to do a 200.000 pounds place but will do a 120.000 pound place cause property might crash, so I'm buying in a place where property hasn't really gone up in the past 20 years so it hopefully isn't over inflated.
I think the problem getting the mortgage is the self-employed bit, I work full time at unis, so it's not too difficult to get approved.

Bubblegun wrote: ↑Fri Apr 08, 2022 3:21 am

Wales4rugbyWC19 wrote: ↑Thu Apr 07, 2022 11:03 pm

jonnyd wrote: ↑Thu Apr 07, 2022 11:35 am ok that's why, I think I could get similar rates if I did variable, but interest rates are going up for sure, inflation is very high at moment, so I'm scared and going fixed. Liquid expat was recommended to me by someone who has done 5 buy to lets and although I've never used a broker before they were very fast. Whether they got me the best deal or not I don't know. Was also going to do interest only, but not now rates are going up.

Buy to lets have become a lot less financially favourable for UK expats over the last five years. Stamp duty has gone up a lot, there is even a special stamp duty level if you are not residing in the UK and you cannot claim mortgage interest tax relief as business expense. Although you still get the income tax allowance which with one house should keep your rent tax free.

I have to agree. I applied for a second buy to let mortgage and I was going to put a 25% deposit down, and have collateral from my first property.
We told the broker our earnings for the past couple of years, and then they said NO. No reason. It may have been the Uk budget changes, second home law changes, both of us self employed, or the corona virus.But it has become more difficult from what I'm hearing.

Yes unfortunately building societies are no longer interested in self-employed expat applicants. I do Uni work and self employment and it was the Uni work and the 40% deposit that got me my mortgage accepted with the Newbury building society. The funny thing is my self employment brings in more money.