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Is a UK property still a good investment?

All the papers are have been full of doom and gloom stories in recent months heralding the death of buy-to-let and a falling housing market.

However, as they say “you shouldn’t believe everything you read in the newspapers” – the UK housing market is still a really safe and lucrative place to invest your hard-earned money. And especially if you are looking for a long-term investment, it’s a safer bet than the more volatile stock market.

Knowledge is key

Always when considering investing be sure of where your funds are coming from and that you have enough to pay deposits, legal fees and stamp duty. Maybe you already have property and are considering re-mortgaging to free up some equity?

The Bank of England base rate is currently very low and there are still some fantastic two, three, five and even 10-year fixed deals to be had.

One of the main ways banks set rates is based on how cheaply they can lay their hands on the money they lend out. This usually comes from savers or by borrowing on the money markets for a certain rate at a certain period, known as the swap rate.

Swap rates dropped last year because of global economic turbulence and Brexit but have since risen and there is a good chance mortgage rates will start to rise as a result. If you prefer the certainty of a fixed monthly repayment as opposed to a variable rate mortgage this could be for you.

Source a specialist expat independent mortgage broker to help you

As an expat investor you might find it tougher to get a mortgage because you don’t fit standard lending criteria.

A specialist broker will be able to search out lenders other than those on the high street and will know what criteria will fit best with your circumstances. As an example, many high street lenders will turn you down if you don’t have a UK credit history or aren’t on the electoral register. But a niche lender will have different criteria under which you could be eligible.

Can we help?

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

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Expats, is it time to buy in the UK?

Prime Minister Boris Johnson insists Britain will leave the EU on 31 October, even if a deal has not been struck with the EU. However, Parliament has passed a law blocking the UK leaving the EU without a deal.

Howard Archer, chief economic adviser to the EY Item group, warns that if the UK leaves the EU without a deal on 31 October house prices could quickly drop by around 5%.

However should the UK leave the EU with a deal at the end of October – or early in 2020 – we believe reduced uncertainty and gradually improving economic activity as the year progresses could see house prices rise by around 2% over 2020.

Housing market activity – and possibly to a lesser extent prices – could be given a lift in 2020 if the government cuts Stamp Duty significantly in the Budget later this year.

UK house price growth is at its lowest since January as buyers and sellers remain cautious amid Brexit uncertainty.

House prices rose just 0.2% in September, according to data from the Nationwide House Price Index, the tenth month in a row in which annual price growth has been below 1%.

On a monthly basis, house price growth fell by 0.2%, taking the average UK house price to £215,352.

Mortgage choices

Expats have a selection of both new and re-mortgage products to choose from. Interest rates remain at present reasonable especially compared to a few years ago. Deals including tracker and fixed are readily available from a number of lenders.

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.