7 Reasons Why Foreign Investors Finance Their UK property Investments

Foreign investors love investing in property in the UK. They do every legal thing possible to invest in UK’s residential property market. At times, using direct cash could prove to be a kind of financial burden. This is mainly why foreign investors get their take out mortgage or other financing options to get their investments financed.

Recently, the demand and prices of residential investment properties for sale at auctions in the UK has gone only up significantly. In one way or another, this certainly encourages foreign investors to get their property investments financed in United Kingdom.

In order to understand this whole thing, we will first have to understand why foreign investors prefer investing in property in UK.


· UK is one of the biggest attraction for professionals from all parts of the world. They need a place to live. This is why the demand of residential property in UK has increased manifolds.

· House builders in UK are working hard to meet the target of building 212,000 houses every year. However, they are building only 170,000 houses every year. Even this shortage of houses is increasing the prices of residential properties. Workers coming to the UK are ready to pay any amount to get house to live.

· Returns through investment properties for sale in UK are expected to get underpinned by generation rent.

· Moreover, could tag UK as a nation of home buyers because new generation of investors in UK prefer investing in buy-to-let property in UK. This gives them a chance to generate a fixed amount of income for a longer period of time.

· Rental sector in UK is growing very fast because demand of housing units is exceeding the supply significantly every year.

· Financial expenditure of UK on infrastructure development is increasing every year by manifolds. This is helping UK get many huge regeneration projects.

These are only small reasons. As for the biggest reason, take a good look below:

UK’s Rules for Foreign investors to take out Mortgage for Investing in Buy-to-let Property in UK:

The government of UK expects foreign investors to follow rules for taking out buy-to-let mortgage for getting their property investment financed. These rules are very much similar to the rules for UK nationals to take out mortgage to buy a buy-to-let property for sale. If you are also a foreigner planning to buy residential rental units then given below are some things that you must be familiar with.

· Rental Income:

Foreign investors also have to make sure their monthly income covers the mortgage interest payments easily. Some lenders expect you income to be at least 140% more than your mortgage interest.

· Deposit:

Lenders expect investors to pay at least 30% to 40% deposit in advance. Remember, the larger that amount of your advance deposit is, your chances of getting mortgage for buying a buy-to-let property increase by manifolds.

· Your Own Income:

UK is also home to some lenders that consider your monthly income to determine what amount of money you should be lent.

Most of the foreign investors think they can easily fulfill all of these conditions of lenders and the government of UK. They find these conditions favorable. This is mainly why foreign investors prefer taking out mortgage and get their property investment financed.

Final Words:

Does this information make some sense for you? For more information in this regard, keep coming back to our website or subscribe to our blog posts.

Foreign investors looking for expert advice in this regard should get in touch with us right now.

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