Expats going for the longer term  

Expat buyers and re-mortgagers are fixing their mortgage deals for longer as the threat of interest rate increases loom.

The number of applications received for 3-5-year fixes from first-time expats buyers has more than doubled year-on-year, with 51% of all expat first-time buyer applications being for longer term deals.

Re-mortgage deals are also being fixed for the longer term although 2 years fixes are still very popular. The overall trend of the expat seems to be to secure a decent rate for the foreseeable future. Tracker deals currently are generally not so popular, but this must be expected with interest rate increases promised.

More and more expat first-time buyers are getting their foot on the property ladder in the UK than ever before, this is likely to be prompted by the Brexit situation and the uncertainty it brings.

What is very surprising is the expat first-time buyer is putting down a larger deposit than ever before showing an increase of 20% in 2017 and this trend is carrying on into 2018.

Data shows that first-time expat homeowners are making very wise decisions about the type of home loan they choose, such as opting for longer terms, which reflects the sound advice brokers are likely giving to their clients.

Role of the UK broker

More expats are turning to a broker, perhaps because choosing a mortgage is one of the biggest challenges they will face whilst residing overseas. The growth in intermediary share of lending over the past five years has risen from 53% in 2012 to 77% in 2017, this clearly demonstrates the value borrowers place on the role of a broker.

Help required?

If you are an expat looking for a new or re-mortgage, please do get in touch and one of our advisers will be happy to assist.