Rental rates rising in UK, more feasible to buy than rent properties — AFFIN BANK

• “Our mortgage business collaborates with local property experts, legal advisors and real estate agents in the UK. These partnerships ensure that Malaysian investors receive accurate information, reliable advice and access to reputable property listings in London and Manchester.”

KUALA LUMPUR (Sep 4): With rental rates climbing up in the UK, it is better to buy rather than rent a property in the UK, says AFFIN Group.

The banking group recently launched AFFIN London Home, its first international financing solution, which has sparked interest among investors looking to invest in prime UK locations.

AFFIN BANK Bhd group community banking executive director Mohammad Fairuz Mohd Radi said he has observed a growing interest among the bank’s clients to acquire properties in London. This interest stems from a desire to diversify their investments and secure a foothold in a globally recognised city that offers educational opportunities, business prospects and a desirable lifestyle.

“This demand is particularly strong among Malaysian parents who are sending their children to the UK for further studies. With the rising rental rates in the UK, it is better to invest [in a property] rather than rent one, as this offers potentially attractive rental yields, especially in a stable and prestigious market like London,” he told EdgeProp.my.

Fairuz views the international real estate market, particularly in cities like London, as a promising investment opportunity for those seeking both returns and stability.

New revenue streams for AFFIN

By offering tailored mortgage solutions, the bank not only addresses the needs of its customers but also expands its product offerings and generates new revenue streams.

"Expanding into international mortgage solutions allows us to diversify our portfolio and reduce reliance on domestic markets. This strategy supports sustainable growth and enhances our competitiveness in the banking industry," Fairuz said.

"Innovation is a fundamental part of our strategic vision, and this product demonstrates our commitment to staying ahead of market trends and delivering innovative financial solutions,” he added.

Tailored solutions for Malaysian investors

While many may find the mortgage process complex, especially for overseas properties, AFFIN Bank offers solutions tailored to the needs of Malaysian investors.

Read also:
AFFIN launches financing solution for property investment in the UK

“These financing options are structured to meet the unique needs and financial capabilities of Malaysian investors, providing competitive interest rates and flexible repayment terms,” AFFIN BANK mortgage business of group community banking managing director Jessie Wong told EdgeProp.my.

“Our mortgage business collaborates with local property experts, legal advisors and real estate agents in the UK. These partnerships ensure that Malaysian investors receive accurate information, reliable advice and access to reputable property listings in London and Manchester,” Wong explained.

Looking ahead, Fairuz believes that international mortgage solutions for children's education should extend beyond the UK. The bank may explore other sought-after study destinations in the future, he added.

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