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British Expats Living In Australia Looking To Invest In UK Buy-To-Let

Posted on 9th February 2018
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Australia is a top destination for Brits who choose to move overseas, but a recent spike in the number of expats buying investment properties back in the UK suggests many want to keep their options open back in their home country.

Over the past 12 months, the number of British citizens living in Australia who are looking to invest in the buy-to-let market back in the UK has risen by 29%, according to Cherry Mortgage and Finance.

While some want to give themselves a bolthole for if they ever decide to return to the UK, many will be looking at property as an investment for the future and a way of providing a monthly rental income. With parts of Australia now some of the most expensive places to buy property in the world, it’s no surprise that many consider themselves priced out of the market and see the UK as a safer place for their money.


Buy To Let Guide For Expats

Buy to let mortgage rules have tightened up for new landlords as well as seasoned investors.

If you are an expat looking to buy or refinance in the UK, then you need to know how the new rules will impact your business.

We advise that you take the below as a guide only and we recommend that you contact an expert mortgage advisor. DeVere Mortgages are a UK based company and specialise in Expat mortgages and they will be able to provide you a more personalised view.

Deposits – the more an investor ploughs into their investment, the lower the financial risk for the lender, so mortgage interest rates decrease.

Expect to put down at least 20% of the property value – and 40% if you want the very best interest rates.

Fees and other costs – lenders will charge an arrangement fee on completion and possibly a booking fee for a fixed rate deal. The costs vary between lenders, so make sure you ask when working out the buy to let purchase cost.



Stamp duty – landlords pay enhanced stamp duty, which is the rate someone who buys a home to live in pays plus 3%.

Interest only – many buy to let mortgages are borrowed as interest-only deals. Since April 2017, HM Revenue & Customs has started to phase in restricted mortgage interest relief for higher rate taxpayers.

By 2020, instead of offsetting all mortgage interest against tax, landlords will only be allowed a 20% allowance regardless of the rate they pay income tax

Income assessment – An amateur landlord typically has one or two buy to lets or rents out a home they once lived in. lenders will consider affordability against total income rather than on rent generated by a letting property.

Portfolio landlords have four or more buy to let properties and will have the rent and costs of each property assessed, but the final decision will be based on the projected rental income of the property to be mortgaged.


Whether you are an experienced landlord or a new investor entering the market for the first time, Acentus Real Estate are here to assist with your property requirements. Through our expert industry knowledge, we identify key regional cities in the Northern Powerhouse that will deliver the long-term capital appreciation and strong rental returns for our investors and owner occupiers.

Get in touch with Acentus Real Estate today and we can help grow your property portfolio.



Get in touch with Acentus Real Estate