Mortgage brokers believe international clients present an opportunity for business but say lenders need to be more open to foreign borrowers, a survey revealed.
Research conducted by RAW Capital Partners of 300 UK mortgage brokers found that although just 35% said they currently worked with international clients regularly, 62% were actively seeking to expand this client base.
This aligned with the 60% of respondents who said more demand had been coming from overseas clients in the last five years, and 63% predicted this appetite to increase or stay consistent over the next five years.
However, brokers cited challenges in catering to international clients, as two-thirds said new policies introduced since the change in government had meant clients needed more support from brokers, particularly with stamp duty changes and private rented sector (PRS) regulation.
Further, 62% of brokers said not enough lenders were willing or able to work with non-UK clients.
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A need to fill the gap for international clients
Tim Parkes, CEO of RAW Capital Partners, said: “The demand for UK property from overseas investors remains perennially high, and brokers are clearly responding to this by actively seeking out ways to grow their client base internationally. Indeed, with economic turbulence commonplace across many countries around the world, we’ve seen investors shifting focus to the UK to reap the benefits of its historically strong, stable and resilient property market.
“However, the inability or reluctance of mainstream mortgage providers to lend to non-UK residents, typically because of the extra due diligence required, has left brokers and international buyers in a difficult position. Now, with many brokers expecting interest from international buyers to rise in the coming years, it is more important than ever that the specialist finance sector fills this gap.”
