While this may be positive for investors, for residential borrowers, this optimism is not shared by Darren Mead, head of mortgages at the deVere Group, who believes overseas buyers and British expats could find it increasingly difficult to buy back into the UK if they do not have proper advice.
He comments: "Expats have been typically deemed as higher risk by UK lenders. Due to changing criteria, buyers are finding it more difficult, unless they work with mortgage advisers who specialise in expat home loans for those who live outside the UK."
Mr Mead has seen high-street lenders requiring some expat borrowers to receive a minimum of 145 per cent of their mortgage costs in rental income - previously it was 125 per cent.
"The change to lender affordability criteria could have potentially significant effects on the UK's property market for expat buyers if they are not made aware of this prior to making a mortgage application," he added.
simoney.kyriakou@ft.com
