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Skipton International, a licensed bank in Guernsey and a leading mortgage lender for UK buy-to-let mortgages, has announced the launch of a brand new 3-year mortgage product at a fixed rate starting at 5.89%. Skipton has also announced the reduction in mortgage rates for new customers across its UK buy-to-let fixed rate range with the lowest 5-year fixed rates starting at 4.99%.
Buy-to-let mortgages allow investors in the UK property market to build a portfolio of properties and generate steady income from rental properties. Any property purchased in the UK for the purpose of renting out, requires a buy-to-let mortgage.
Skipton International's new 3-year mortgage product offers competitive rates and make the start of the year the perfect time to investigate the purchase of a UK property for rental purposes.
The reductions have been applied across its product range, including for both purchase and remortgage applications, with effect from Monday 13 January 2025.
"UK property purchases are proving a solid investment for non-UK residents, with a year-on-year increase in property values, a surge in demand for available rental properties, and higher rental income achieved than ever before," said Lorraine McLean, Senior Mortgage Sales Manager, Skipton International.
UK high street banks are typically hesitant to lend to foreign nationals due to concerns about lack of established financial history in the UK, and potential challenges in enforcing loan agreements across borders.
However, Guernsey-licensed bank Skipton International offers a solution by providing mortgage options for British expats and non-UK residents from places like Hong Kong or Singapore, allowing them to buy property while navigating these lending restrictions.
The UK's transparent legal system provides security for property rights, a significant draw for expats and non-UK residents from countries with less stable markets. Furthermore, the streamlined restrictions on foreign buyers allows non-UK residents to enter the market easily, provided they can secure financing.
"The UK's buy-to-let sector has remained strong despite interest rate fluctuations. Recent developments look promising, and the Bank of England's November 2024 rate cut to 4.75% signals good news for property investors, and projections indicate rates may fall to 4.2% by 2026. The market continues to grow steadily with high rental demand and landlord profitability rates reaching 87%," added McLean.
Skipton's approach makes gaining a UK mortgage for buy-to-let properties as stress free as possible including easy to use UK mortgage calculators to estimate how much to borrow, and the monthly repayments for the required loan size.
Skipton International is also a part of the Skipton Group, which includes the UK's Skipton Building Society and Connells, the UK's largest real estate agency.
Skipton's Guernsey Advantage
Skipton is registered in Guernsey, an offshore island affiliated with England, but with its own laws as a British 'Crown Dependency'. A highly regulated jurisdiction, Guernsey gives reassurance to anyone with financial dealings on the island.
Skipton's new rates will also be available to its global network of brokers in addition to direct applications.
