Recent falls in expat mortgage interest rates plus the effect of a weak housing market in the UK look set to give expat house buyers a significant negotiating edge in the busy buying period when many expats return to the UK.

The availability of lower expat mortgage rates, whilst at the same time, many regions in the UK are reporting softer domestic housing demand and falling prices opens up opportunities for overseas buyers who are not affected by domestic UK economic pressures.

As the threat of an increase to UK Base Rate and with-it expat buy to let mortgage rates recedes, several lenders have begun to cut expat mortgage rates and reduce bank administration fees.  Variable rate loans are available for expat buy-to-let purchases at very competitive rates across the board.

Expat buyers remain concerned about possible mortgage interest rate rises; these may end up being far more modest when UK Base Rate does eventually increase. The period since the financial crisis has been one of abnormally low UK Base Rates, but equally unsustainably high bank margins, as banks have rebuilt their balance sheets. Before the 2008 financial crisis, many mortgage providers would typically aim for a margin of anything from 0.75% to 1.25% over UK Base when setting mortgage interest rates, but today, many lenders are still achieving nearly three times this level of mark up on loans. As and when UK Base rates do rise therefore, lenders will have the ability to trim margins, so the impact on borrowers can be softened.

British buyers overseas can be faced with a daunting task when trying to buy in the UK, as loans now have to meet strict affordability criteria, whilst many lenders will cherry pick the countries where they will lend to expat buyers. Using an established and experienced independent broker who will match buyers to lenders is important and will save time and money in the long term in such a complex and evolving market.

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.

If all the experts are correct then house prices will rise between 2% & 4% across the UK in 2020, but due to the Brexit situation these figures could vary drastically. However, if we look at history and all the ups and downs the UK has suffered over the years gone by one thing you can always seem to rely on for profit is property. So, why should a little thing like Brexit change what has happened in the past!!

If these figures are achieved it follows the trend of this year, a recent report states increases in values could be stifled by the Brexit talks which is dependent on how they progress. Another factor that could possibly slow growth down is first time buyers being unable to get onto the property ladder.

If you are an expat with property in the UK compare this potential annual growth to what could be achieve from an investment in any high street bank and property still looks a very good bet indeed.

There is a great deal of uncertainty facing everybody in 2020 but as always the UK property market is expected to maintain a decent growth rate.

Property still in short supply

There has been and still is a shortage of supply which constrains activity in the housing market and levels of house building remain low. This is another major factor why all experts expect the property market to remain strong through the Brexit negotiations which spells good news for expat UK property owners.

New and re-mortgages

Expat mortgages can still be obtained with a good selection of products available. This is expected to remain constant for the coming year.

Need some help?

If you require any assistance with your new or existing mortgage please do contact one of our fully qualified independent advisers who will be happy to assist.

If 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. So realistically how hard is it to obtain an expat mortgage?

What you will need

There are a number of items to take into consideration when looking at expat mortgages not least a cash deposit. 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. Please do not despair all is not lost; this is where a professional independent broker can certainly help secure the correct mortgage for you.

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

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.

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.

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.