The UK housing market without doubt still offers remarkable value for money if you own a property or can afford to buy one. Anybody who owns a property in a good area of the UK over the last 10 years would have seen their investment grow substantially.

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 well into the future.

At present with low inflation, strong wage growth, falling unemployment and very competitive mortgage deals on offer the housing market is likely to remain strong.

With expat mortgages being offered at such advantageous rates it seems like the right time to be considering the future. There are some very good fixed and tracker deals on offer to the expat with lenders competing for your business.

Mortgage providers are making it easier for expats to enter the UK market which is good news so please contact us for details of what is available.  

It’s very interesting to note that the Brexit vote seems to of had no effect on the expat market at all. Current figures show expats are taking out more mortgages than in any time gone by. Plus re-mortgages are hitting record levels.

What you will need to apply

–        Contact details

–        Property purchase details

–        Deposit available

–        Mortgage required

–        Certified proof of address

–        Certified ID (Passport)

–        Bank statements (Normally 3 months)

–        Wage slips (Normally 3 months)

–        Certified accounts if self-employed

The requirements vary from lender to lender and the above is just to give you a guide to help speed up the process.

Mortgage advice?

If you would like advice regarding an expat mortgage, please do make contact and one of our expert advisers will be pleased to help.

Expats are cashing in

The expat new and re-mortgage market last year saw increased activity especially towards the latter part of the year. Applications for re-mortgages rose by 48% over 2016 and have to date continued in the same vein into 2018.

With the value of UK property still on the rise month on month expats have seen this as an opportunity to raise capital for alternative ventures. It is expected that property values will continue to rise over the next few years albeit at a lesser pace. The Brexit negotiations are allegedly heading to a successful conclusion but as we all know this could change at any time. The chancellor is predicting interest rate rises in the future but at a “steady” pace. All these factors are giving expats confidence in the future and capital raising seems to be the order of the day.

Lenders have responded to this activity and increased the number of mortgages available to the expat. Expats now have a good range of products to choose from with competitive rates on offer.

If you are thinking of re-mortgaging there are many pros and cons and all aspects need to be carefully considered before any decision is made. It is recommended that you seek professional advice as to whether this suits your needs both in the short and longer term.

Will rates increase?

I guess this is the “million dollars” question, if all the predictions for the long term are to be believed it is likely we will see rate increases later in the year. It is most likely these increases (if any) will be on a small scale as the Chancellor said in November last year.

Need some help?

If you are thinking of re-mortgaging or want advice on a new mortgage please do call and one of our fully qualified advisers who will be happy to assist.

The Bank of England left monetary policy unchanged in December, as had been widely expected.

After raising interest rates for the first time in more than a decade in November, the Old Lady of Threadneedle Street was always set for a quiet month, and that proved so, with the bank leaving interest rates unchanged at 0.5%.

At its November meeting, the bank hinted that the path of interest rates could steepen somewhat in the coming year or so, signalling the potential for another rate hike in early 2018, and possibly even another towards the end of the year, should the economy remain reasonably robust. That view was maintained in December. Any future increases in Bank Rate are expected to be at a gradual pace and to a limited extent.

The bank made clear that Brexit remains the most important influence on the British economy right now, saying that: Developments regarding the United Kingdom’s withdrawal from the European Union – and in particular the reaction of households, businesses and asset prices to them – remain the most significant influence on, and source of uncertainty about, the economic outlook.

With inflation still rising thanks to the depreciation of the pound since the vote to leave the EU last summer, the bank faces a key trade-off, balancing that inflation with the slowdown in the economy, dwindling consumer spending and declining inward investment.

Expat mortgages

If you are an expat with a mortgaged property in the UK this could affect you in 2018. As a new year’s resolution, you could be well advised to review your current mortgage deal with a view to securing a longer-term fixed deal. These are without doubt uncertain times so reviewing your longer-term plans cannot be a bad idea.

Can we assist?

If you would like to review your current mortgage planning, please make contact and one of our advisers will be happy to help save you money.

Mortgage rates have been falling consistently for the past 24 months. Both fixed and tacker interest rates are now at the lowest they have been for a good many years. Rates are increasing slightly since the announcement of the bank base rate increase but are holding steady. The question is for how long?

Expats should be taking advantage of these low rates on offer. It is no secret that interest rates will rise again in the future the question is when. Wise expats who currently have a mortgage on a standard rate should review it sooner rather than later as there are some good fixed deals available.

Many mortgage providers are fighting for new business and this has resulted in the lowest ever fixed rate deals being offered. If your current deal is coming to an end soon it is strongly recommended to consider a longer-term fixed rate deal.

Figures are showing that fixed-rate deals have fallen on average over the last 24 months by 0.5% this is the biggest reduction recorded in recent years.
So, what does this mean for borrowers?

Well, it means right now is a very good time for new expat investors and existing ones.

New investors have an excellent choice of very competitive products to choose from, both fixed and tracker.

Existing borrowers should, without doubt, be very prudent and review their existing contracts on a regular basis. By keeping pace with the current market existing borrows can save thousands of pounds on the remaining term of their mortgage.

Need assistance?

Our advisers are used to dealing with all types of expat mortgages, they have vast experience in this area. Please do contact us to discuss your requirements and we will be happy to help.

Re-mortgaging has reached record levels and now accounts for 37.5% of all mortgages conducted according to recent research.

The proportion of expat re-mortgages has risen by nearly 13% over the last 12 months, as homeowners are increasingly switching mortgage companies to find more attractive rates.

The promise of increased interest rates has no doubt helped drive demand for re-mortgaging. More and more expats are re-mortgaging to save money but also raise capital which is locked in their properties.

Many expat homeowners and landlords who have been saddled with lenders on less than competitive interest rates, or stuck on higher standard variable rates are switching to more attractive fixed term deals. Rising property prices have also had an impact on re-mortgage growth, especially in the South East of the UK.

It is expected the demand for re-mortgaging will continue to rise in 2018, especially if there are further rate rises. There is likely to be a shift towards more consumers considering fixed rate deals as the risk of rate rises remain for the time being. Expat buy-to-let re-mortgaging has also risen and now represents 12.8% of all mortgages, up by 6% year on year.

As a general overview, if you are an expat and not locked into a penalty mortgage deal good advice would be to review it with a view to saving money.

Can we assist?

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