Expats very keen on UK properties

We have seen a significant increase from expats wanting to secure property in the UK due to falling house prices in the majority of European countries. Since the Brexit vote interest as increased substantially as expats want to secure a foothold in their native country.  Expats living in France and Belgium, for example, have seen property values drop by as much as 15% over the last 5 years. Spanish owners have also seen tough times over the last few years but there are signs the market is beginning to level out at last.

The UK property market continues to be on an upward spiral even after the recent events and offers security in the longer term. Mortgage lenders are still offering good rates to attract new customers on long and short-term deals, so overall now seems an appropriate time to invest in the UK.

Expats who have existing properties in the UK are also getting very wise to the re-mortgage market as their current deals come to an end. With the likelihood of a rate rise soon, now would be a very good time to review your mortgage if you have one.

Re-mortgaging to get the best rates of interest and save money

When taking out a new mortgage it is normal to get an introductory rate, for example, it may be a low fixed or discounted rate or a low tracker rate for the first few years.

Introductory deals normally last for between 2 to 5 years but some are only months. Once the deal comes to an end it is likely the mortgage reverts to the standard variable rate which can then start to cost you extra money.

It is advisable when your deal ends to contact us to review your needs, we will search the marketplace for the best deal to suit your current needs.

Help required?

If you would like to discuss your mortgage requirements please do make contact and one of our advisers will be happy to assist.

Expats need to get ready

An interest rate rise from the Bank of England in the near future is being described as a “near certainty” as inflation hits 3%. The Office of National Statistics said that in the year to September inflation had risen to 3%, the highest annual rate since March 2012.

The announcement makes an interest rate rise in November a near certainty as the Monetary Policy Committee takes action to show they are keeping inflation under control.

It would seem the age of record low interest rates is coming to an end, anybody with a mortgage should get prepared sooner rather than later.

If you are an expat with a mortgage get it reviewed quickly to ensure it will meet the upcoming pressures. Acting now could save individuals literally thousands per year.

Expats with a UK mortgage on a variable rate will see repayments increase, but this can be avoided if a switch is made to a more beneficial rate.

What can you do?

Well, the first thing is to check out your current deal and find out if you have any early repayment penalties. You may already have a very advantageous mortgage deal and if this is the case leave well alone. You should seek professional advice when it comes to mortgages as the wrong move now could cost you thousands.

You may wish at this review to raise some cash from your re-mortgage to pay off expensive credit cards. The other alternative is to go for a longer-term fixed rate, so you can budget over the coming years. These are very important times coming up and you should not sit still and ignore this hoping it will all go away.

Can we assist?

If you want to review your mortgage call one of our experts and we will be happy to assist you in your future planning.

Expats could earn a pay rise?

More than a fifth of expat mortgage payers won’t shift to a new lender, no matter how good a new deal they are offered, according to research. Mortgage experts say staying with your existing mortgage provider could be the equivalent of turning down a pay rise.

According to the new data, more than a third of expat borrowers haven’t changed their mortgage in the past five years, despite better deals on offer. This means that homeowners could be unnecessarily overpaying by thousands of pounds a year. Just ask yourself, when was the last time you reviewed your mortgage?

Most at risk of overpaying are expat homeowners whose deals have ended and have moved to their provider’s standard variable rate (SVR).

Now is the time to consider re-mortgaging as rates are likely to rise in the very near future. Borrowers on a SVR could save the equivalent of a monthly pay rise or an annual family holiday.

Mortgage rates plummeted again this year but this is about to end if you believe what Mr Carney is saying. Rates could start to rise as early as next month so if you are on a SVR mortgage get it reviewed urgently.

Could you give yourself the equivalent of a hefty pay rise by re-mortgaging?

The simple answer to this question is YES! If you have a current deal with no penalties to change It is strongly advised you to contact us to see what is available.

Your mortgage is likely your biggest financial obligation; don’t let it be your biggest blind spot.

Can we assist?

If you would like to review your current mortgage please make contact and one of our qualified advisers will be happy to explain your options.

Bank rate rising?

A leading economic research consultancy has warned that mortgage rates are set to rise, putting a brake on house price inflation.

According to expert’s mortgage rates are set move back above 3% by the end of the year.

Economists have suggested that the first interest rate increase for a decade could come as early as November after the Bank of England warned a hike was likely in the coming months if the economy evolves broadly in line with its expectations. Thus, Interest rates could rise by the end of 2019 to an expected 1.75%.

Accordingly, it seems almost certain that mortgage interest rates are now approaching a turning point. It would seem that sound advice for expats with a mortgage is to review it as soon as possible to ensure it meets future demands.

Higher borrowing costs will represent a major change for the housing market, mortgage interest rates will without doubt increase as they are doing slowly at present. Despite the inevitable rise in mortgage rates, it is unlikely that to trigger another downturn in house prices as supply and demand seem to rule the day.

It is very clear, much will depend on how the economy evolves, but most economists and financial market pricing suggest that a small rise of 0.25% is likely at the Monetary Policy Committee’s next meeting in November, which would take Bank Rate to 0.5%.

A modest rise in the Bank Rate, by itself, will have only a modest impact on economic activity. Indeed, if rates are raised to 0.5%, monetary policy settings will still be a little more supportive than they were before Bank Rate was lowered to 0.25% in August 2016.

Need to review?

If you would like to review your current mortgage or indeed require a new one please make contact and one of our advisers will be happy to help.

Expats are catching on

There was a surge in re-mortgage activity in August, as expat borrowers look to lock into cheap deals ahead of an expected interest rate rise.

Since the financial crisis in 2008 mortgage rates have steadily fallen. The Bank of England cut interest rates in August 2016 from 0.50% to 0.25% – the lowest on record and the first interest rate cut since 2009 when the financial crisis was at its peak. This led to a number of lenders slashing their rates and competition in the mortgage market heating up.

However, with the Bank of England hinting that it could raise interest rates for the first time in a decade in order to curb inflation, economists are predicting a hike could come as soon as November this year. Record low mortgage rates continue to sustain market activity, but given even the most dovish members of the Bank of England’s Monetary Policy Committee are now adding to the calls for an interest rate rise, this picture could very quickly change.

A “wait and see” approach is best avoided for existing expat UK homeowners considering re-mortgaging.

The number of expat mortgages approved also went up in August for the second month in a row, suggesting the market is picking up steam following the Brexit vote.

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage but it certainly makes sense to check how your existing deal stands up to the future.

Contact us.

If you would like to review your current mortgage please make contact and one of our advisers will be happy to help.