British expats acquiring buy-to-let (B2L) property in the UK are typically squandering £40,000 on unnecessary transaction costs, exchange and loan rates in the first five years, according to research from Thistle Finance and Mercury FX.

The research found that specialist currency firms could save their clients up to 4% on transaction fees compared to the average high street bank.

The report suggested that expats “squander” additional funds by taking out specialist B2L finance without shopping around. For example, on a £500,000 loan, the interest rate differential between the best and worst rates can conservatively amount to £4,000 annually, or £20,000 over 5 years.

Thistle Finance managing director Mark Dyason said: “Far too many UK expats purchasing buy-to-let property at home are being hoodwinked by the high street banks when getting their money back into the country. They’re then compounding their misery by failing to search for the best finance rates in what is an increasingly competitive market. It’s a painful and wholly avoidable double whammy.

“With more and more demand from expats for UK buy-to-let, particularly in Scotland due to the arrival of challenger lenders with significantly improved criteria and rates, it’s vital they do their homework before they transact. The result can be savings of tens of thousands of pounds.”

Mercury FX founder Alastair Constance further commented on the report, adding: “For UK expats, buy-to-let is the easiest way to hedge against rising house prices back home. You might be off the radar geographically but you’re on the UK property ladder, which can provide real peace of mind. What’s equally important is that you purchase buy-to-let property in the most cost-effective way possible. Right now, far too many expats are paying an unnecessary premium for the privilege, in terms of both the money transfer costs and the buy-to-let loan finance they secure.”

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