The Struggles of Buying Homes Abroad
With the government’s recent white paper on the housing bill as well as the reported movements of the price value of properties all over the United Kingdom, the property and development market has come under a lot of scrutiny and attention in recent times. Yet it is now becoming more and more apparent than ever (what with the impending Brexit showdown) that British people not living in the UK as well as potential buyers wanting to purchase property in the United Kingdom are finding it harder and harder to do so.
This, according to the deVere Mortgages group, is due to the fact that mortgage rejections of those people are being implemented more and more frequently, with mortgage applications often being rejected when British expatriates and overseas potential buyers are seen as posing a greater risk of not being able to pay them back. There have indeed, as reported by Darren Mead who is the Head of Mortgages at the deVere Group enterprise, been a number of new legislative implementations that mean that foreign investors cannot capitalize on the pound’s lower rate (which would be advantageous to them) and therefore are not able to invest themselves into the property and development market of this country. With the alterations that have been put in place, a lot of these discredit buyers from other countries from inside and outside of Europe, thus acting as a deterrent and therefore decreasing the number of people wishing to set up a base in the United Kingdom.
This will clearly have quite a considerable impact on the British housing economy since, as Darren Mead explains, foreign buyers are valued as an important contributor to the housing market in the UK. But with the greater amount of obstacles put in their way when they try and apply for a mortgage, it is evident that many will be put off by this.
