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.
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.