Buy-to-Let Watch Episode 11

Buy-to-let watch episode 11
Liz Syms
Liz Syms, CEO of Connect for Intermediaries

In the latest instalment of our Buy-to-Let Watch series, Buy-to-Let Watch Episode 11 | we explore the rise of expat investors in the UK. This follows our previous update, Buy to Let Watch Episode 10, which examined the extraordinary long-term view of short-term lets. We press with this episode and discuss the rising overseas interest in the UK buy-to-let market.  HMRC reported that overseas buyers made up 1.4 per cent of all UK property transactions in the year ending March 2023. While this may appear modest, it represents a 20 per cent year-on-year increase, signalling growing confidence among international investors. This acceleration continued through 2024, driven by renewed global appetite for stable property markets such as the UK.

The UK continues to experience a chronic housing shortage, which supports strong rental demand and healthy yields across many regions. Combined with a transparent legal system and well-regulated lending environment, the UK remains an appealing destination for overseas buy-to-let investors seeking long-term security. Movements in currency markets also play a role. A weaker pound can make UK assets comparatively more affordable for buyers whose home currencies hold greater value.

More Lenders Entering the Expat and Non-Resident Space

In 2024, lenders, including Molo and UTB, expanded their product ranges to support expatriate and non-resident applicants better.

  • A UK expat refers to a British citizen living or working outside the UK.

  • A non-resident applicant is a foreign national who is not a UK citizen.

These applications are often classed as complex buy-to-let cases due to additional layers of legal and regulatory scrutiny. Many lenders restrict access to specialist product ranges, meaning advisers must demonstrate a strong understanding of areas such as sanctions checks, source-of-funds verification and cross-border documentation requirements.

Sanctions compliance is especially important. Advising a client or company with links to restricted jurisdictions can have serious legal consequences. Similarly, anti-money-laundering obligations are more stringent when clients are based overseas, often requiring enhanced due diligence and more thorough verification processes.

For advisers looking to develop skills in this area, support is available through our network. Visit our page on specialist mortgage support for complex cases for further details.

Offshore Company Structures and Overseas Investment Strategies

Using a limited company to purchase buy-to-let property has become standard practice for many UK investors. However, foreign nationals frequently prefer offshore company structures instead. These often involve an offshore entity that owns a UK-registered company, which then holds the property.

Such arrangements can offer tax efficiency and asset protection, but they must be carefully configured to comply with UK regulations. Advisers working with these clients should ensure they understand both the UK requirements and the implications of the client’s jurisdiction of residence.

If you support clients using limited companies or specialist structures, our resource on limited company buy-to-let mortgages provides additional guidance.

What This Means for Advisers in 2024

The sharp rise in international interest is reshaping lender strategies, product availability and the skills advisers need to operate confidently in this space. Brokers who stay ahead of regulatory changes, sanctions guidance, and overseas due diligence requirements will be well-positioned to support expat and non-resident clients.

To stay informed about market shifts and lender updates, you can explore our latest mortgage insights.

Start with Simpler Expat Cases

For advisers expanding into the buy-to-let market in 2024, a practical first step is to begin with expat buy-to-let clients. Expat cases tend to involve fewer barriers around language, documentation and communication, making them easier to manage as you build confidence. When working with expats, keep the following key points in mind:

  • Check whether the client’s country of residence has local restrictions on financial advice. Although buy-to-let is unregulated in the UK, overseas jurisdictions may have their own rules that advisers must respect.

  • Confirm that your firm or mortgage network permits advisers to arrange expat buy-to-let mortgages. Some firms restrict higher-risk or specialist business.

  • Strengthen your onboarding with enhanced identification tools and prioritise virtual face-to-face meetings rather than phone calls to verify documentation.

  • Assess the client’s long-term affordability by reviewing income stability, currency fluctuations, tax exposure and any additional financial commitments.

  • Whenever possible, review credit history in both the UK and the client’s home country to build a more reliable risk profile.

  • Build your own panel of lenders experienced in expat cases. Some expat lenders may require a proven advice track record before granting direct access.

If you are considering authorisation routes, explore the benefits of joining our mortgage network for advisers. This provides structure, compliance guidance and access to lenders experienced in buy-to-let lending.

Understand How Expat Criteria Differ in 2024

Expat mortgages often sit outside standard buy-to-let lending. It is essential to understand where criteria diverge, as many lenders apply additional layers of due diligence. In 2024, advisers should be aware that:

  • Deposit requirements may be higher than traditional UK buy-to-let products.

  • Income, credit score expectations and background checks often carry tighter restrictions.

  • Rates for expat mortgages may differ from standard buy-to-let ranges, particularly for clients earning in non-GBP currencies.

  • Some lenders require the client to have an existing UK buy-to-let, a UK bank account or evidence of their time since leaving the UK.

  • Solicitor requirements may be more stringent due to cross-border legal checks.

To support advisers working in this area, our dedicated buy-to-let mortgage supportpage

Popular Expat Lenders in 2024

The expat mortgage market remains competitive, with several lenders strengthening their propositions this year:

  • Skipton International continues to be a leading expat lender, offering up to 75 per cent LTV and competitive five-year fixed rates.

  • Molo has recently reviewed its pricing. Although slightly higher, their range includes shorter fixed periods and tracker products, and their minimum loan size is lower than Skipton’s.

  • UTB now offers highly competitive expat products aimed at clients earning over £50,000 who already hold a UK property.

  • Specialist lenders such as Shawbrook and HTB support more complex cases, including mixed-use properties and higher-value portfolios.

These lenders offer strong opportunities for advisers serving expat investors in 2024, particularly those seeking flexible structures or diversified buy-to-let strategies.

Why Expat Buy-to-Let Can Be a Valuable Opportunity

Advisers who develop expertise in this niche can benefit from a steady stream of well-qualified clients. Expat investors often require more detailed support, which in turn means stronger client relationships, repeat business, and opportunities to handle refinancings and portfolio expansions.

If you prefer not to handle complex expat cases directly, consider partnering with a specialist adviser or using a trusted packager service so you can still support clients while ensuring they receive the right guidance.

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