Despite the uncertainty surrounding Brexit negotiations the “dire shortage” of homes is still pushing prices upwards, according to a recent surveyors report. Brexit negotiations continue and all the news coming out at present is hardly of a positive nature, but still, throughout all this, the UK property market is holding firm.

Recent reports show expats are returning to the UK residential market in large numbers, but the lack of supply means there are not enough quality properties available.

Property values continue to rise albeit at a slower rate than years gone by, with 29% more surveyors seeing growth in July compared to 18% the previous month.

Interest from prospective expat homebuyers increased for the sixth consecutive month.

The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.

Surveyors are predicting a rise in prices over the next 12 months, with price expectations now positive in the majority of areas in the UK. These results show that confidence within the housing market continued to sustain momentum in the last few months.

With interest rates still very low, many expat buyers are realising that now is an affordable time to borrow. As a result, the market remains resilient and we are seeing a growing number of mortgage approvals for first-time expat buyers in particular.

If you are an expat and currently own a property in the UK with a mortgage now would be a very good time to review your current deal. Interest rates are currently low, but it has been muted this could change in the near future.

Mortgage help?

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

Expat mortgages now much quicker

The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 18 months.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months. A straightforward re-mortgage is now on average completing in less the 5 weeks which is significantly quicker than 18 months ago.

A survey of expats applying for a mortgage was taken recently and it clearly showed one of the most important factors in the mortgage process was the speed of advancement, a close second was ease of application.

Good news is the lenders have taken notice of the findings and have reacted well by speeding up the process considerably.

Expats are now using an independent broker more than ever before to secure their deals whether it be a new or re-mortgage. The survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

2018 has seen a large increase in approved mortgage applications compared to the same period last year. These increases show how restrictions are being eased by lenders as they compete for every single bit of business. This coupled with record low-interest rates is indeed good news for the expat borrower.

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates has receded slightly. All this positive news is giving the borrower confidence in the longer term, what happens after the Brexit negotiations are complete remains to be seen.

Like to know more?

If you require help with your new or re-mortgage please do contact one of our fully qualified advisers who will be happy to assist.

 

With the new tax changes that have come into force recently, expats are strongly advised to seek advice from an accountant on what can be done to maximise profitability.

Expat landlords could be looking at reduced profitability due to the tax relief on mortgage interest paid being changed. There is also a new stamp duty level that has been introduced from April 2016 so any expat contemplating a purchase needs to be fully informed.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to seek professional assistance as to the options available.

A local accountant we spoke to said, “We are getting more and more expats than ever before coming to us to seek advice on incorporation or more general tax advice”.

The way forward

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws that have come into force. It is likely the accountant will recommend setting up a limited company to enable more tax advantages. Good news for expats is you can have a limited company registered in the UK whilst living overseas.

Secondly, completely review your current mortgage deal to make absolutely sure the current mortgage you have meets your needs now and in the longer term. It may very well be you currently have the correct mortgage, but it won’t do any harm to check it out.

It could be a very good time to consider re-mortgaging to release capital if required. By just completing these two simple tasks you could make huge savings over the coming years.

Need some mortgage advice?

If you wish to review your current mortgage please do contact one of our qualitied advisers and we will be pleased to help.

Expat mortgages is seeing a surge in enquiries from Asia, as Hong Kong is identified as the most expensive city for British expatriates to live in.

A recent study carried out found that Hong Kong is now the most expensive city for British workers to reside, closely followed by Tokyo, Zurich, Singapore and then Seoul.

There has been an increase of 72% in mortgage completions for UK buy-to-let mortgages from Hong Kong residents during 2017, compared to the previous year and figures are rising this year.

The survey compares the living costs for expatriates, reviewing 209 cities worldwide and finding that Hong Kong is the most expensive, mainly due to soaring rental costs.

With the most expensive property in the world, expats living in the former British colony struggle to purchase property since the Chinese territory’s government imposed a 15% buyer’s Stamp Duty on foreign sales. This combined with tough loan-to-value mortgage requirements, such as buyers typically having to provide a 40% deposit. This situation has prompted many to look elsewhere for property investment and the UK is without doubt the most popular.

The number of enquiries for expat mortgages from Asia, and in particular Hong Kong, has been steadily rising over the past couple of years. UK property remains an attractive option for those living in countries where buying is simply not an option. Familiarity with the UK market and maintaining a tie with their homeland are all reasons why expatriates are finding comfort with UK property investment.

Help required?

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