Al Rayan and deVere handle big upsurge in demand for UK mortgages from Qatar expats

Expats in Qatar and the wider Gulf region are seizing the opportunity afforded by the post-Brexit devaluation of sterling to buy properties in the UK.
The mortgages arm of global financial services company deVere Group has reported an average 55% week-on-week increase in mortgage enquiries since the UK’s EU referendum, with the majority of  applications from  residents of Qatar, the UAE, Saudi Arabia, Kuwait, Bahrain, and Oman.
deVere Mortgages’ new strategic partnership with Al Rayan Bank is, moreover, proving a win-win for expats whose needs are not always understood by typical UK lenders. Gulf Times talked to Mike Coady, managing director of deVere Mortgages, to learn more about this niche market.
He commented: “What we often find with mortgage lenders in the UK is that when you have spoken to them once, then you deal with a call centre or even get updates through an online portal.
“We have a different approach. From the day the client comes on board they deal with same person. We also understand that many of our clients are on the move travelling about the region and for that reason we make sure that they are on top of the necessary paperwork by delivering it to them wherever they happen to be. That might mean delivering documents to their hotel or at an airport.”
deVere has 80 offices around the world with staff ready to handle paperwork and quickly ship the documents to the UK.
Coady explained that for many UK lenders the expat did not present in a way that can be easily processed by their systems. Their salaries might be in a local currency, they might be classified as self-employed, be on short-contracts and in other ways fail to match standard profiles.
He gave an example of a typical ‘computer says no’ outcome.
“Some online forms have boxes that are required to be filled in stating gross and net salary — which in the case of some expat applicants would appear as the same figure as there is no tax deduction. This would be perceived as an error and the application would be shut down,” he explained.
Banks are also sometimes less open to dealing with expats because of the complex money laundering rules that now exist, financial regulations and restrictions on cross border activities.
Al Rayan Bank, whose Shariah-compliant mortgages are available to both Muslim and non-Muslim clients, works well with deVere because it also understands this niche market and will look at cases presented by deVere with the specialised eye needed to make the right call.
Coady observed: “We have been consistently impressed by the products and services delivered by Al Rayan Bank, and we look forward to expanding together as a result of this partnership.”
Sultan Choudhury, CEO of Al Rayan Bank, said: “We identified the expat market as an underserved sector some time ago, targeting resource towards it accordingly. As a result we have experienced significant growth in this area of our business.”
In addition to London, cities such as Birmingham and Manchester are proving attractive to buyers. The new HS2 rail line will cut the commute from Birmingham to London to 49 minutes and Manchester to London to just over the hour. So those cities can expect to see a building boom. deVere works closely with IP Global which seeks out high quality developments around the world. It will typically purchase units off plan and offer expats the opportunity to buy at favourable prices with the expectation of higher yield.
“We are seeing a lot of money going into developments in Birmingham. You can get a lot for your pound. It’s not so easy now to get a yield or see growth upside in London whereas in Birmingham you can easily get attractive 2 bedroom apartments for £200,000 — £250,000. There are a lot of planning applications in places like Birmingham for new skyscrapers, developments, restaurants and transportation,” said Coady.
Interest is nationwide and not just centred on the capital.
“The last three cases from Qatar this week have been looking at new builds in the north of the country,” Coady added.
Expats who suddenly find that they have a healthy deposit at their disposal are eager to cash in and some planning for their return are finding they can afford to upscale their plans to buy family homes that were previously thought out of reach.
“Six months ago exchange rates were 15% less favourable and clients are now amazed at the deposits they have at their disposal.
“They have a sizeable deposit with a favourable low interest rate —  we at deVere strongly believe that interest rates will stay low for a long time  — and the mortgage payments they were due to pay, perhaps $1,000 per month, are now down to $800 a month,” said Coady.
So whether it’s a couple looking to buy a family home, a single person wanting to get a foot into the market with an apartment or an investor interested in buy- to-let this seems like a good moment to buy.