While most UK mortgage brokers see international clients as an key to growing their business, finding suitable lenders and dealing with the complexities of government policy are proving to be significant obstacles, new research from RAW Capital Partners has found.
The Guernsey-based specialist lender commissioned an independent survey of 300 UK mortgage brokers. It found that while just 35% “frequently” work with non-UK resident buyers, over three fifths (62%) are actively seeking to expand their overseas client base.
More than half (60%) of the brokers surveyed said they have noticed an increase in demand from overseas in the past five years, while 63% expect this demand to rise or remain consistent in the five years ahead.
However, the survey also found that brokers face notable challenges when seeking mortgages for non-UK residents buying property in the UK. For instance, two-thirds (66%) of brokers said the introduction of new policies since the Labour government came to power have led to overseas clients requiring greater support from brokers, particularly in helping them understand stamp duty reforms and private rental sector regulation.
Additionally, 62% of UK mortgage brokers feel there are too few lenders that are willing or able to work with non-UK clients.
Tim Parkes, CEO of RAW Capital Partners, said: "The demand for UK property from overseas investors remains perennially high, and brokers are clearly responding to this by actively seeking out ways to grow their client base internationally. Indeed, with economic turbulence commonplace across many countries around the world, we’ve seen investors shifting focus to the UK to reap the benefits of its historically strong, stable and resilient property market.
"However, the inability or reluctance of mainstream mortgage providers to lend to non-UK residents, typically because of the extra due diligence required, has left brokers and international buyers in a difficult position. Now, with many brokers expecting interest from international buyers to rise in the coming years, it is more important than ever that the specialist finance sector fills this gap.
