Expats should review and save thousands

There is very little doubt in the expat mortgage market 2018 is the year of the expat re-mortgage. You only need look at the rates being offered by lenders – particularly in the lower Loan To Value (LTV) bands. The rates currently on offer are not going to stay this low for much longer so if you are an expat and have a current variable rate mortgage review it sooner rather than later.

Research confirms that over 50% of all expat borrowers who move to their lender’s standard variable rate after their initial deal terminates don’t re-mortgage or product transfer for 3-5 years.  Also the report shows a quarter of re-mortgagors said they find the whole re-mortgage process difficult, with 42% saying they didn’t have time to shop around.

The “shopping around” mentality is clearly far more embedded in the UK consumer than ever before; however this doesn’t always translate to mortgage borrowers, even when the savings that can be achieved are substantial.

Expats need to get the message that re-mortgaging is where significant savings can be made – especially with rates as they are now. Rates are unlikely to remain this low for much longer so acting now could save thousand in the future. If you are an expat on a standard rate mortgage would you like to save upwards of £2000 PER YEAR? These savings are of course dependent on the size of mortgage you have but surely it’s worth checking.

Warning – A re-mortgage is not always suitable for everybody as your existing deal may well have penalties attached to change within the discounted period. It is always recommended to seek professional help as to what is best advice to suit your needs.

Can we help?

If you are looking to secure a new or re-mortgage please do make contact and one of our advisers will be happy to assist.

UK property growth slowing

Experts believe UK property values will rise between 2.5% & 4.5% across the UK next year according to figures released by one of the major high street mortgage lenders. This prediction does come with a “health warning” due to the Brexit uncertainty, but facts are the UK property market has seen off far more challenges than this in the past.

If these figures are achieved it follows the trend of this year, the report also states increases in values could be stifled by the possibility of a Brexit fallout early in 2019. Another factor that could possibly slow growth down is first time buyers being unable to get onto the property ladder. First-time buyers still find it difficult to raise the necessary deposits levels to meet the mortgage lenders requirements.

If you are an expat with property in the UK compare this annual growth to what could be achieve from an investment in any high street bank, property still looks a very good bet in the long term.

The report states they expect growth to slow more in the London area than elsewhere due to the initial high costs. It is likely properties in the North and East of the country will see the largest growth due to their current affordability levels. Read more

Expats, when did you last review your mortgage?

A former Bank of England Monetary Policy Committee member has predicted that interest rates could rise significantly in the next few years. This forecast is based on the lack of progression of the Brexit negotiations and what effect that could have on interest rates.

Inflation has now caught up with wage growth causing a sharp consumer slowdown and the weak pound has also squeezed consumers and the expectation is that households will adjust their spending downwards.

More and more expats are looking for ways to reduce their monthly outgoings. One of the biggest expenses most people have every month is their mortgage payment.  Keeping this in mind it would be a wise move to review your current mortgage so as to establish if it is still the best deal for you.

This will not be the case for everybody, your current deal may well be very good, but it is most certainly worth checking.

With all the uncertainty the Brexit situation is having on the UK currently a prudent move may be to fix a term for your current mortgage, this would take out all the uncertainty over that period.

It is highly recommended to seek professional independent advice as to what new deal could suit your current situation.

Reasons to re-mortgage

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • Transfer to a fixed medium/long term deal

Help required?

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

Expats are well in profit

Despite the uncertainty surrounding Brexit negotiations the “dire shortage” of homes is still pushing prices upwards, according to a recent surveyors report. Brexit negotiations continue and all the news coming out at present is hardly of a positive nature, but still, throughout all this, the UK property market is holding firm.

Recent reports show expats are returning to the UK residential market in large numbers, but the lack of supply means there are not enough quality properties available.

Property values continue to rise albeit at a slower rate than years gone by, with 29% more surveyors seeing growth in July compared to 18% the previous month.

Interest from prospective expat homebuyers increased for the sixth consecutive month.

The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.

Surveyors are predicting a rise in prices over the next 12 months, with price expectations now positive in the majority of areas in the UK. These results show that confidence within the housing market continued to sustain momentum in the last few months.

With interest rates still very low, many expat buyers are realising that now is an affordable time to borrow. As a result, the market remains resilient and we are seeing a growing number of mortgage approvals for first-time expat buyers in particular.

If you are an expat and currently own a property in the UK with a mortgage now would be a very good time to review your current deal. Interest rates are currently low, but it has been muted this could change in the near future.

Mortgage help?

If you are looking for a new or re-mortgage please do make contact and one of our advisers will be pleased to assist.

Expat mortgage applications increasing daily

Rising levels of mortgage enquiries, applications and completions show that a significant number of expat first-time buyers are still both willing and able to get a foot on the UK property ladder.

The industry feels this surge of interest is partly down to the Brexit situation, expats are very keen to acquire property in the UK due to the ongoing uncertainty. The other main factor is the poor returns received when investing in property in other European countries.

UK property values remain stable which is a testimony to the long-term potential growth this market offers. Even with all the uncertainty in Europe and the UK, the market remains resilient and profitable, which is why expats see this area as good financial security.

It seems that expat first-time buyers are the ones having the most luck. Over two-thirds of mortgage applications by expat first-time buyers were successful in the first six months of 2018. The average number of expat enquiries has also risen dramatically this financial year as expats look to get a foothold on the UK property ladder.

Mortgages are not as easy to obtain as in the past but there are still good options open to the new investor and people wanting to re-mortgage.

It is strongly recommended using an independent broker as the application process can be somewhat stressful. An independent broker will have access to all products available and will advise accordingly.

Can we help?

If you are looking to invest in the UK please do contact us and one of our qualified advisers will be happy to assist.