Guide for UK buy-to-let interest relief changes for expat landlords

Guide for UK buy-to-let interest relief changes for expat landlords

29th June 2017

Skipton International has launched a guide to help expat buy-to-let investors with new changes to mortgage relief.

From April 2017 to April 2020, interest rate relief on UK buy-to-let property is to be phased out, affecting what landlords with mortgages on UK investment properties can offset against UK tax.

The changes will potentially push over 400,000 UK resident lower rate tax payers into a higher bracket, as well as impacting on higher rate tax payers. This could also impact upon the UK tax bracket for expats with investment property.

Nigel Pascoe, Director of Lending, Skipton International, said: “There have been a number of measures over the past few years that have affected overseas investors who own UK buy-to-let properties. The phasing out of mortgage rate relief is likely to have an impact on some landlords so this is a good time for property owners to look into this in more detail and take professional advice where appropriate.”

Skipton launched buy-to-let mortgages in 2014 in response to the difficulties many British expats faced when trying to invest in buy-to-let property in England and Wales. Since then, the Guernsey-registered bank has completed over £190 million of expat loans, on more than 900 mortgages.

To the end of May 2017 Skipton had more than double the number of enquiries for Expat Mortgages compared to the same period in 2016. This included a 124% rise in enquires from British expats in the United Arab Emirates, a 118% increase from British expats in Switzerland, and a 162% increase from British expats in Hong Kong.

Nigel said: “Buy-to-let remains a popular long term investment for British expats and we don’t expect the phasing out of mortgage interest rate relief to change this. The guide is a way of helping ensure expat investors are aware of changes in the UK, so they can prepare for them.”

Skipton International won Best Offshore Account Provider 2017 at the Moneyfacts Awards; the fourth time Skipton has won a Moneyfacts Award, and the bank has been commended, highly commended, or has won an award for the past seven years.

Check out the Skipton International guide at https://www.skiptoninternational.com/help-article/interest-relief-guide