Expats should review their mortgage before Brexit.

A new report just released clearly shows the majority of expats need to review their current mortgage deal.

Figures show the majority of expats do not review their mortgages when a fixed rate or term deal expires. Good news is there are plenty of good deals still available to meet the majority of expat needs. 

Reasons to re-mortgage

  • To save money.
  • Fix repayments
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon

Reasons not to re-mortgage

  • You have a penalty on your current mortgage which makes it prohibitive.
  • You have had credit problems since taking out your current mortgage.
  • You currently have an advantageous rate which may be fixed.

More and more people are looking for ways to reduce their monthly outgoings, one of the biggest expenses most people have every month is the mortgage payment.  It may be a wise move to review your current mortgage to establish if it is still the best deal for you and you are not paying more than you need to. With Brexit looming nobody really knows what the outcome will be and any implications it may have on the mortgage market. If you are an expat with a mortgage which does not have penalties to change you may be very wise to see what fixed deals are on offer, better “safe than sorry” as they say.

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

Can we help?

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

Brexit an expat benefit?

Brexit is causing many UK property investors to hold off purchase decisions, with the result that property prices are showing some of their slowest rises in years in many parts and in some prime areas such as London, even going backwards.

Brexit and Expats is something of a discussion. This decline in real values is now opening up real opportunities for expat buyers in the UK. Currency moves have served to magnify the real price drops and create dramatic opportunities for investors.  Against both the US dollar and euro, currencies in which many expats are paid, sterling has depreciated by around 15% to 20% over the last three years. This has given overseas buyers an additional effective price cut, so it becomes clear why UK property is now offering very good value for overseas investors.

Average house prices in the UK increased by just 2.7% in the year to October 2018 according to the Office for National Statistics, down from 3.0% in September 2018. This is the lowest annual rate since July 2013 when it was 2.3%. The lowest annual growth was in London, where prices fell by 1.7% over the year to October 2018, following a fall of 1.8% in the year to September 2018.

Over the past two years since the UK voted to leave the EU, there has been a gradual slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England. According to estate agents You Move, some of Britain’s wealthiest areas have had up to 25% wiped off their value in 12 months as Brexit uncertainty continues.

Data from the property portal Rightmove revealed the average asking price of a London home had fallen below £600,000 for the first time since August 2015 and now stands well below the previous peak of almost £650,000, which was hit just before the Brexit vote in 2016.

Can we help?

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

Expats are keeping active

Expats are in ever increasing numbers trying to either get on the ladder or increase their current UK property holding. The majority of expats see property in the UK as a “pension fund” or a way of laying financial security for the long-term future.

Bricks and mortar have always been a national obsession. The wisdom that property is fundamentally a very good long-term investment has been passed down from generation to generation.

Brexit

This is the one unknown area that could affect the property market, if all the experts are correct it is unlikely to have any lasting long-term damage. Facts are whatever happens the UK property market is very likely to remain strong and positive,

Applications

Expat mortgage applications are currently at an all-time high and the outlook for 2019/20 remains positive. It would seem that the high property prices do not deter the investor. Expats seem to have the attitude that investing in savings accounts are a lost cause and property offers far better returns in the long run.

According to recently released figures the UK property market has been the best performing in the whole of Western Europe. It is therefore not surprising that so many people want to invest in an ever-shrinking market.

Need assistance?

If you require help with your current or new mortgage please contact one of our experienced independent advisers who will be happy to assist.

Expats should review their mortgages in the UK

Recent comments from the Bank of England suggest that UK base rates could be heading lower in the short term. This seems to be based on the likelihood of a no-deal Brexit which is currently the central policy of the new Prime Minister Boris Johnson. While we have seen this type of speculation in the past, money markets are now indicating this is a very real possibility and one which expat homeowners may need to address. So, when is the right time to refinance your mortgage?

To say that we are in uncharted waters in the UK is an understatement to say the least. The 2008 economic downfall was like no other seen in living memory. The slow economic recovery could be described as “false” bearing in mind the amount of quantitative easing and historically low interest rates propping up markets. So, if we now turn our attention to the potential to refinance mortgages, when is the right time?

Today is the only certainty

If we take a step back and look at the situation from a distance, interest rates today are the only ones we can quote with any real certainty. Yes, the Bank of England has suggested falling the short term to cushion the blow of a no-deal Brexit. However, if you wind back just a few months there was speculation that UK base rates could be headed higher, so can we believe with any certainty what Mark Carney is saying?

As we mentioned above, the only definite interest rate is the one you see before you today. So, if you are considering refinancing your mortgage it is probably worth approaching a mortgage broker to see the best deals on offer. You would obviously need to take into account any additional charges, early redemption penalties, locked in interest rates and forecasts for the future.

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.