It seems that expat homeowners have taken our frequent warnings about upcoming mortgage rate rises to heart, as January and February saw a record number of re-mortgages completed. This month is the highest number of re-mortgages since October 2008. January’s figure also marks an increase of 21.3% year-on-year and an impressive monthly increase of 53%.

While an increase in re-mortgaging is expected in the New Year as homeowners put their household finances in order, this strong growth is above the seasonal fluctuations you normally see at this time of year.

This increase is also partly due to a number of fixed rate mortgages coming to an end while borrowers locked into attractive deals amid expectations of further interest rate rises a few years ago. Given that standard variable rates have been moving upwards, it’s hardly surprising that expat borrowers coming to the end of a fixed rate deal will look to re-mortgage rather than see their monthly repayments go up considerably. But it’s not only re-mortgagors that were active in January and February.

Expat first timers

The number of new expat first-time buyers also increased in the last quarter which is somewhat surprising given the Brexit negotiations. It would seem expats want to get a foot on the ladder in the UK so to speak perhaps as a backup.

Even with the general slow down in property prices the UK still represents good long term potential growth.

Mortgages

Expats currently have an excellent choice of new and re-mortgages available at advantageous rates, best advice is to act sooner rather than later as these rates are expected to increase.

Can we help?

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

March’s gross mortgage lending to expats has increased by 4.8% from last month, this is the fourth month on the run. In addition to the month on month increases lending this year has increased 14% overall.

Experts believe these strong figures are down to the Brexit negotiations progressing albeit slowly but positively. There is definitely less confidence in the property values of other European countries. Property continues to gain value in the UK at a steady rate and looks like continuing for the foreseeable future unlike the rest of Europe.

One other factor that has contributed to this robust growth is the number of re-mortgages completed. Both expats and UK residents are living in the fear that interest rates are about to jump. 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.

UK property offers stability

The UK property market without doubt still offers 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.

It is expected that house price increases will level out as the year goes on with a steady and reliable growth rate, again spelling good news all round.

At present the outlook for 2018 and beyond is very positive within the UK property market, the signs are this will continue for the foreseeable future.

To sum up – traditionally the UK property market has always offered excellent value long term investment potential and there is no reason to believe this won’t continue.

Mortgage advice?

If you are in need of assistance with a new or re-mortgage, then please contact our expert advisers who are waiting to help.

Expats with a mortgage in the UK will be pleased with this news.

The Bank of England has kept its base rate on hold, but a May rise is still widely predicted

The Bank of England’s Monetary Policy Committee (MPC) has voted by a majority of 7-2 to maintain Bank Rate at 0.5%.

Following an increase from 0.25% in November 2017, the Bank Rate has been held at its current 0.5%.

But it may not stay that way for long – with many experts predicting an increase in interest rates in May.

The Bank’s own report admitted that an ongoing tightening of monetary policy over the forecast period will be appropriate to return inflation sustainably to its target. Inflation is currently 2.7%, against a 2% target.

The MPC added that “all members agree that any future increases in Bank Rate are likely to be at a gradual pace and to a limited extent”.

How this may affect borrowers

If the Bank of England does hike rates in the coming months, expat borrowers could see their monthly mortgage repayments rise.

The Bank of England may have opted to sit tight now, but it’s likely that they’ll lift rates in the next couple of months. This would impact all consumers, but particularly homeowners who’ll see mortgage rates rise to their highest level in a decade.

Good advice for expats

If you have a mortgage on a property in the UK it would be sound advice to get it reviewed as soon as possible. If all the predictions are correct switching to a fixed deal if you have no redemption penalties could save you a lot of money in the future.

Can we help?

If you are looking for a new or wish to review your current mortgage, please do make contact and one of our advisers will be happy to assist.

The number of expat mortgages coming through brokers has risen steeply over the last 2 years, this figure now stands at 71% from 64% last year.

There has been a steady increase in mortgages sold by intermediaries to expat buyers and re-mortgagers as the market remains very buoyant indeed.

Need for help

Brokers believe the increase in regulation and complexities of the market are the driving factors. Affordability calculations and lender criteria have become harder for consumers to understand.

It is not surprising that more and more clients are choosing to obtain their mortgage via an intermediary as lenders require more detail than ever before. This is not to say it is more difficult to obtain an expat mortgage just far more complex. For the majority of expat clients who reside abroad communicating with a lender in the UK can be very time consuming and confusing.

Expats seem to value a personal service which is often missing from the high street banks email service, this is particularly the case with expats re-mortgaging.

Buying a home in the UK is a challenging task if done from afar so making the mortgage application as pain free as possible is obviously a huge advantage for the expat.

It’s very clear that expats appreciate the value of a broker who can guide them through the process and provide quality advice on the best options available to them.

Independent broker benefits

• Full range of mortgage choices
• Industry qualified advisers
• UK based for easy communication
• Fully automated service
• Faster completion

Assistance required

If you would like help with your new or re-mortgage, please make contact and one of our advisers will be happy to help.

Against expectations, house price growth picked up last month the latest house price index has revealed. Specifically, annual growth increased from 2.6% in December to 3.2% in January this year.

Expat UK property owners will be pleased to see these figures, confirming their investment is holding firm and growing through these challenging times.

The figures further revealed that there was no change in monthly growth, with a month-on-month increase of 0.6% recorded in both January and December. As a result, the average house price stood at £211,756 in January, up only slightly from £211,156 in December, but surpassing the previous high of £211,671 recorded in July 2017.

Given that house prices are still increasing, expat UK homeowners might find this a great time to consider re-mortgaging, taking advantage of both high house prices and decently low mortgage rates. It is predicted mortgage interest rates will rise by the end of the year so consideration towards a fixed deal may be a shrewd move.

The future

UK property is still without doubt a very good long-term investment as is has been over the last 50 years or so. There is no reason to suggest this will change in the next 50 years although growth may not be as rapid.

If you compare the performance of UK property over a general bank savings account there is just no comparison, property wins by a very long way.

With the continual shortage of quality property in the UK this situation alone should give expats confidence for what is to come.

Help?

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