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Expats do you know your mortgage?

As many as one in three expat homeowners in the UK don’t know what mortgage rate they are on, potentially costing them thousands of pounds each year, according to new research. Are you one of these?

The survey covered over 1500 expat homeowners with a mortgage in the UK and found that one in three (34%) didn’t know what rate they were on. A further four in ten (41%) only knew the approximate figure.

One in four (25%) of those who took part in the survey were on their mortgage lender’s standard variable rate (SVR), usually costing more than other products available from the same provider. The survey showed that only 35% of expat homeowners were on a fixed rate deal.

Looking deeper into the findings they reveal that borrowers with an average-priced home could end up paying as much as £450-£800 a month (over £4000 per year) more on their lender’s SVR.

Of those on SVR who had been on the same mortgage for at least the past five years, when asked why they hadn’t switched one in five (22%) said it wasn’t worth the hassle and one in seven (15%) claimed that they hadn’t thought about it.

There is a clear level of apathy when it comes to mortgage deals, over 70% said if re-mortgaging was made easier they would change immediately.

The re-mortgage market is competitive at the moment, so there’s a good chance that re-mortgaging will save you money. Speak to an independent expat mortgage adviser is a great place to start to find out your options, they will help make the prosses run smoothly and limit the paperwork you have to do.

Can we help?

If you would like to know more about a new or re-mortgage please do make contact and one of our qualified advisers will be happy to help.


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Expats on standard variable rate mortgages (SVR’s)

Expats on standard variable rate (SVR) mortgages could potentially halve their monthly payments by switching to a fixed rate mortgage, according to the latest research.

Research shows the monthly cost of an average expat standard variable rate mortgage for a £150,000 home loan rose from £720 in September to £735 in October. This follows the increase in the bank base rate from 0.5% to 0.75% in August.

In January, the average monthly payment stood at £702 according to the calculations. This means expats on variable rate mortgages are typically paying £33 more per month for their mortgage than they were at the start of the year.

The research found that expat switching from a variable rate to a fixed rate mortgage could save themselves between £200 and £400 per month.

Obviously the increase in bank base rates has affected standard variable rates the most but it does appear the situation is more mixed amongst fixed rate loans. Whilst some have crept up others such as the more popular fixed rate 2-year loans have fallen back slightly since last month.

Re-mortgaging figures for expats look very healthy at present and this trend should continue if more review their current deals. The good news is there are a number of attractive fixed rate mortgages on offer currently for expats.

Help required?

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

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Really positive outlook

A panel of industry experts has agreed that the outlook for property investment in the UK remains positive, despite the uncertainty around continued Brexit negotiations. Although there’s much uncertainty, the ambiguity has not dampened the spirits of prospective homebuyers and property investors.

Historically, real estate has proven itself to be a safe and secure asset by offering stable, long-term returns. As a result, demand for property remains high. Recent figures revealed that the average house prise in the UK rose by 3% in the 12 months to June 2018 and this positive trend has been met with enthusiasm from landlords and expats alike, with new research saying that more than half feel positive about the current state of the market.

This attitude is inspiring confidence throughout the expat sector and signifies a positive outlook for the future of the property market over the coming year, particularly in light of the fast approaching Brexit deadline.

So, despite wider market uncertainty, the returns available from owning, investing in and developing the right type of real estate continue to be favourable versus other asset classes, something that is expected to continue moving forward. This is for a number of reasons including: the supply/demand imbalance (not enough houses being built), the continued availability of cheap credit and a healthy economy. Never forget the fact that the UK remains a great place to do business.

All this has led to even more product innovation expats and landlords as lenders compete in this increasingly popular market.

Mortgage advice?

 If you are looking for an expat mortgage please do make contact, we have a team of experts waiting to help.

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Expat mortgage approvals hitting new highs

This year has been the year to break numerous records and now we have seen expat mortgage approvals reach new heights.

Records show expat mortgage approvals are 36.7% higher than this time last year. It is no surprise to us as enquiries have been on the rise since the Brexit vote was announced. Property in the UK is still without any doubt a very good long-term investment unlike property in most of the Euro zone.

Buy-to-let mortgage approvals are showing the greatest increase and account for 41% of the total expat business. Buy-to-let business this year has been very buoyant as more expats look to secure property and at the same time earn extra income.

With a potential interest rate rise on the horizon re-mortgages are now becoming very active as clients look to secure a longer-term fixed deal.

If you are an expat and have not reviewed your current mortgage it would seem a very good time to do so as this could save you a great deal of money on your monthly budget.

Buy to let expat mortgages

UK and expat landlords are reaping rewards from lower mortgage charges and longer fixed rate deals. If you have an existing expat buy-to-let mortgage it may be a very good time to review its status.

We are hearing of a potential rate rise which could seriously hit profitability of your rental income. Remember it is not always best advice to change your mortgage mid-term so seek help from a professional adviser to see if this could be best advice for you.

Need some assistance?

If we can help with your new mortgage please call one of our fully experienced advisers we are here to help!