Bank of England Holds Rates – What Does This Mean for Expats Looking at UK Mortgages?
The Bank of England has today kept Bank Rate at 3.75%. For anyone considering expat mortgages, today’s decision naturally raises questions about what it could mean for mortgage rates and the UK property market.
We’ve been helping expats with UK mortgages for many years, and one thing we would say is don’t get too caught up in a single Bank of England announcement.
Mortgage rates don’t simply move up and down with Bank Rate. Lenders have their own funding costs, criteria and appetite for business, and the expat mortgage market can behave quite differently from the standard UK residential market.
Rather than trying to guess exactly where rates will be in three or six months, we think it’s far more useful to establish what your options are today.
Thinking about re-mortgaging?
If your existing UK mortgage deal is coming to an end, the advice is to start looking at your options early.
Starting the process doesn’t mean you have to commit to a new mortgage immediately. It simply gives us time to understand your circumstances, look at the lenders available and work out the best way forward.
For expats, this can be particularly important. Where you live, the currency you’re paid in, whether you’re employed or self-employed and the amount you need to borrow can all influence which lenders will consider an application.
We’ve dealt with expat mortgage cases for many years and sometimes a relatively small detail can make a surprisingly big difference to lender choice.
Buying UK property while living overseas
We continue to speak to British expats around the world who want to buy property back in the UK, particularly Buy-to-Let property.
Living overseas doesn’t automatically prevent you from obtaining a UK mortgage.
There are lenders that specifically operate in the expat market. The important part is knowing which ones to approach for your particular circumstances.
That’s where specialist experience can really help.
What does today’s Bank of England decision mean for expat mortgages?
Keeping Bank Rate at 3.75% provides some stability for the moment, but it doesn’t guarantee that individual mortgage lenders will keep their rates unchanged.
Mortgage pricing can move for several reasons, sometimes before the Bank of England makes its next decision.
That’s why we wouldn’t recommend trying to perfectly time the market.
If you’re considering buying, remortgaging or raising funds against a UK property, find out what you can borrow and what options are currently available. You can then make an informed decision based on your own circumstances.
Speak to us!
If you’re living overseas and would like to discuss a UK mortgage, we are always happy to have an initial conversation.
Whether you’re buying, remortgaging, raising capital or looking at a Buy-to-Let investment, We can look at your circumstances and help establish what options may be available.
Expat-Mortgages
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Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgages are subject to status and lending criteria.
