Overseas Mortgages
Growing your income through international mortgages
As summer starts in earnest and clients jet off to enjoy some foreign sun Barry Luhmann, head of lending at Lloyds TSB International Mortgage Service, tells brokers how to make the most of advising on international mortgages
The international mortgage market presents brokers with a great opportunity to add another income stream to their businesses. With many brokers facing tough times in the domestic market, the current growth in international mortgages can offer a welcome opportunity to diversify their business. The subdued UK market looks set
to remain into 2012, but our research shows that many people still aspire to owning a place overseas and, while the downturn may have caused them to delay buying abroad, they are starting to return to the market now. What’s more, the continued pace
of globalisation and emigration from the UK is feeding strong demand from UK expats in UK property – part of the international mortgage market that is often overlooked. Although there is ample opportunity,
international mortgages are an area of business often overlooked by brokers due to their lack of knowledge about
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the process. We find brokers will receive infrequent enquiries about this type of mortgage, and more often than not will refer them on without considering that the process is often straightforward and can lead to lucrative commissions. Instead of referring these enquiries on, there’s no reason why brokers shouldn’t take them on, while also seeking out international mortgage customers proactively. In fact, people buying overseas
are even more likely to use a broker than those buying in the UK – as they appreciate the assistance and reassurance that a broker will give them in what can feel like a leap into the unknown. So what does the international
mortgage market look like exactly? The first thing to understand about it is that it is a two-way street. UK customers buying holiday homes or investment properties outside the UK is one part of the market but there is also a second
major segment that can be equally, if not more lucrative than the first: overseas residents buying in the UK.
Expat nOt Ex-cliEnt The international residents group consists both of foreign nationals looking to buy property in the UK, but also UK nationals living abroad looking to buy real estate in the UK prior to moving back. Foreign nationals may also want to remortgage in order to release capital on a property they already own. These overseas-based UK nationals
offer a great chance for brokers to proactively seek out international business. Any previous customers they know who moved abroad could become customers again. When people emigrate, they almost always rent property initially (in about 90% of cases), and then in their third or fourth year they often look to buy in their adopted country, elsewhere or look to return to the UK. These situations offer brokers an
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