Expats lending expanding

October’s gross mortgage lending to expats has increased by 4.85% from the previous month, this is the third month on the run. In addition to the month on month increases lending this year has increased 18.67% overall.

Property continues to gain value in the UK albeit at a reduced rate, this looks like continuing for the foreseeable future unlike the rest of Europe which seems to of stagnated.

There are two factors that has contributed to this strong growth, the first being the number of re-mortgages completed and the second is the Brexit situation.

Both expats and UK residents are living in the fear that interest rates are about to jump early next year. These fears are justified as already a good many long-term fixed rate deals have been withdrawn from the market but there are still some very attractive deals on offer.

Value for money

The UK property market still offers remarkable value for money if you own a property or can afford to buy one. Anybody who has owned a property in a good area of the UK over the last 10 years would have seen their investment grow substantially.

Traditionally the UK property market has always offered good value long term investment potential and there is no reason to believe this won’t continue long into the future. The only unknown factor is what will happen after the Brexit talks conclude and how any deal will affect the housing market.

At present with low inflation, strong wage growth, falling unemployment and very competitive mortgage deals on offer the housing market will remain strong.

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Expats are increasing their portfolios in the UK

This year has seen a record level of expat buy-to-let mortgage approvals as expat landlords look to increase their portfolios. Recent surveys of expat landlords clearly reveal they are in the market to increase their holdings as quickly as possible.

The reasons are numerous for this trend, but it felt within the industry that Brexit has a lot to do with it. The survey revealed that over 50% of current landlords are achieving net returns of between 5% and 8% on their current portfolios. This is obviously a much larger return than any traditional savings account can currently offer.

With house values still on the increase year on year expats are also seeing the equity within their properties increasing at a very steady rate. So with all this positivity it is little wonder buy-to-let mortgages are increasing rapidly.

Home ownership in the UK has fallen to its lowest level for over 28 years which may well shock some people. When you look at the overall cost of buying a property in the UK perhaps it is not quite so surprising.

Buy-to-let mortgages

Expat landlords are reaping the rewards of relatively low mortgage interest rates and set up costs which look like rising in the near future.

We always recommend being very selective before deciding on what mortgage best suits your needs. With so many deals on offer it always pays to look at all the options, for example a long-fixed rate deal may be very prudent with the fear of a rate rise looming.

Need some help?

If you need assistance when choosing your next mortgage call one of our experienced advisers and they will be pleased to assist.