Sound advice and a great deal easier

SThousands of expat borrowers could be missing out on a better mortgage deal by not speaking to an independent adviser, research has found.

The survey of over 1,000 expats revealed that 31% who went direct to a lender didn’t understand how a independent mortgage adviser could help with their search.

The findings also showed that 69% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years, while 74% stayed put because they felt they had a ‘good deal’.

Without seeking independent mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser.

The analysis showed that the mortgage industry still needs to demonstrate the value of independent mortgage advice to expat borrowers – just 30% of those who went direct to the lender said that they would likely speak to a mortgage adviser next time.

Meanwhile, 60% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower, and just over a third (34%) thought a independent mortgage adviser was there to support the lender.

What’s more, borrowers going through a mortgage adviser have access to far more mortgages than those going direct to the lender.

Expats who benefitted from a mortgage adviser searching the market for the best mortgage deal were more likely to have switched in the last five years (29%), compared to just one in five (19%) of those who went direct.

Expats who used a mortgage adviser were also in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Can we help?

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

Expats using a broker could save money

EA recent survey has claimed that thousands of expat borrowers could be missing out on a better deal by not speaking to an independent mortgage adviser when looking for a mortgage.

Its survey of over 1,000 expats found that 31% of consumers who went direct to a lender didn’t understand how a mortgage adviser could help with their search.

The findings also showed that 69% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years and 74% stayed put because they felt they had ‘a good deal’. However, without seeking independent mortgage advice, these individuals would have missed out on mortgages deals that are only available through an independent mortgage adviser.

There are plans to use the research to tackle the misperceptions about independent mortgage advisers and raise awareness about how they can help borrowers to find the right mortgage for their needs.

Borrowers going through an independent mortgage adviser have access to many more mortgages than those going direct to the lender, including specialist mortgages for the self-employed and later life lending solutions such as lifetime mortgages..

Homeowners who benefitted from a mortgage adviser searching the market for the best mortgage deal were more likely to have switched in the last five years (29%), compared to just 19% of those who went direct. 

Borrowers who used a mortgage adviser were also overwhelmingly in favour of doing so again. 98% said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using a mortgage adviser to family or friends.

Help required?

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

Obtaining an expat mortgage

OIf we put Brexit to one side for the moment, there are many expats originally from the UK looking to acquire property in their former homeland. The value of sterling has fallen since the 2016 referendum on the EU and even though it has made a short-term recovery, the real spending power of the euro and dollar has increased significantly. However, how hard is it to obtain an expat mortgage?

Criteria

There are a number of items to take into consideration when looking at expat mortgages. These include

• Proof of income
• Using assets as security 
• Credit history
• Identification and address

Proof of income

If you are employed by an international company, with a footprint in the UK, this is probably the Holy Grail for lenders and borrowers. You will likely be paid in sterling, have a good track record and be able to prove your income. The situation can be different if you have your own company, you are self-employed, or you are paid in a foreign currency.

Credit history

In many ways creating your own credit history in the UK is something you can begin well before you make an expat mortgage application. For many expats, in the far-flung countries of the world, there may not be a credit history system and even if there is, it may not be as accurate as its UK counterpart

Expat market is expanding daily

Immigration was a major issue during the EU referendum and while much focus was placed upon European citizens working in the UK, there are many UK expats living the length and breadth of the globe.

 Can we help?

As expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.

Expat mortgages

Most expats have a strong desire to buy or retain ownership of residential property in the UK due to ever-increasing property prices and long-term security.  Even with the Brexit situation property in the UK has remained strong with values seemingly rising all the time albeit at a lesser rate.

Certain parts of the country are stagnating in terms of increasing but overall the UK market is as vibrant as ever.

There is still a lack of housing which makes the buy-to-let market very attractive to expats who want a foothold in the UK and achieve a return on their capital. If you look at the basic interest rates on offer at the major banks it’s little wonder why expats don’t see savings as a way forward.

Whatever reasons you may have for considering purchasing a house or flat in the UK, the good news is that there are lenders who are more than willing to offer expats mortgages. Many providers don’t even advertise the fact. 

The expat mortgage market is very complex, you would be wise to seek professional independent broker advice as to what product best meets your needs. Independent brokers will have access to a number of companies offering very favourable rates which are tailored to suit most needs, including buy to let.

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.

Can we assist you?

If you are looking for a new or re-mortgage do get in contact and one of our qualified advisers will be happy to help.

New property price data shows robust rises over the last year, but why are the monthly figures so erratic?

Figures very pleasing for expat property owners

House prices in the three months to April were 5% higher than in the same three months a year earlier, a robust and surprise increase in a market that had been considered muted.

The average UK house price now stands at £236,619.

On a monthly basis house prices were up by 1.1% in April, compared to a fall of 1.3% in March.

Are buyers throwing off the Brexit shackles, or is the recent volatility in the monthly data indicative of something else?

Skewing the figures

This month’s figures were driven by a higher volume of London sales and more expensive new build properties.

In a market where stock and overall transactions are lower, any change within the make-up of the data can have a disproportionate effect and skew the figures.

The index has already come under scrutiny this year after months of erratic monthly growth figures. These can be sprightlier than the smoothed annual and quarterly numbers, but even so, they’ve been turning heads with the extremes with which they have been moving.

By this measure for April, the housing market is still comfortably making money for homeowners in real terms.

One explanation for ricocheting growth figures like this is persistently low stock levels. In sought after areas, this can lead to demand being supercharged one minute and gone the next, with price rises coming in waves as brief competitions for limited numbers of homes come and go.

Long-term growth

What is reliable is the longer-term growth trend. It’s now 10 years since the lowest point of the house price index in the wake of the financial crisis in April 2009 – and average prices have bounced back. Over the past decade annual house price growth has seen the average price increase by £81,956, or an average rise of 4.3% each year.

In need of some guidance?

Can we be of assistance with your new mortgage/re-mortgage we have fully qualified independent advisers waiting to help you.