Expat mortgage business remains buoyant in 2024

September 2024 has seen more expat mortgage business being conducted than this time last year.

New applications for first time and re-mortgage business are also high for the time of year indicating expats still have faith in the UK property market.

August & September saw a record number of expat re-mortgages as clients look to release equity built up over the years within their properties. The released equity is being used for various reasons including debt consolidation and funding their children’s education whilst abroad.

Expats are also re-mortgaging to fix the rate of their loan for the longer term.

If you are considering taking out an expat mortgage or re-mortgaging, please call us and one of our independent advisers will be happy to assist.

UK property prices are stable and increasing in some areas

According to the latest figures house prices are still on the rise, July and August this year saw an average 2% increase as the UK economy which helps stabilise prices.

It is expected that house price increases will level out as the year goes on with a steady and reliable growth rate, again spelling good news all round.

At present the outlook for 2025 is very positive within the UK property market, the signs are this will continue for the foreseeable future.

Need assistance?

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

Buy-to-Let for Ltd Company and establishing a limited company.

Half a decade ago, there would have been few in the mortgage market who might have predicted limited company expat buy-to-let as one of the major growth areas in the years ahead.

But that’s exactly what has happened in the expat buy-to-let sector. The market has shifted to accommodate how expat landlords might wish to take their portfolios forward and how they can try and secure the mortgage interest tax relief which has been steadily cut for those holding properties in their own names.

As an expat are you thinking of entering the buy-to-let market in the UK?

With UK property prices now no longer easing, if you are contemplating entering the market this could well be a profitable time.

Positives to consider

• Property prices are falling.
• Potential bigger gains on a later sale.
• Experts are predicting property price increases will return in middle to late 2025.
• Regular monthly income from rental income.
• Increasing waiting list of tenants looking for value in the renting market.

Expats, there are bargains to be had at the auctions!

Auctions are a great way to add to a buy-to-let portfolio or start one, with a wide range of bargains often going under the hammer.

Among the many attractions of buying property at auction is that purchasers avoid the conventional drawn-out process of property buying. As the property is sold in a matter of minutes as soon as the hammer falls. Abd buy-to-let ltd company options will save lots of personal requirements.

Preparation is key.

But before attending and bidding on property at auction, investors must conduct all necessary due diligence.

Can we help?

 If you would like assistance with your expat buy-to-let mortgage, please do call one of our expert independent advisers. We have years of experience in this market. Finally we look forward to being of assistance to you.

Fixed rate expat mortgage and re-mortgages. Expats with a mortgage in the UK should avoid the “wait and see” approach

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage, but it certainly makes sense to check how your existing deal stands up to the future.

 Fixing for the longer term could prove prudent

Popularity of longer-term deals had waned at the start of the year with expat borrowers opting to fix their mortgage for two years.

Greater competition from lenders keen to lure in borrowers for longer terms and rate rises on five-year deals increasing far less than those of the two-year options has caused a shift.

In June this year demand for five-year fixed-rate re-mortgages went up 40%. Thus representing half the market according to the report. In April they made up just 28% of this market.

It also emerged the number of expat borrowers using a broker to re-mortgage has also hit a record high. So now is the time for a fixed rate expat mortgage.

Lenders are eager to attract longer-term business which has created a competitive landscape for expats. This has ensured five-year average rates have remained relatively flat month-on-month.

Role of the UK broker

More expats are turning to a broker. This is perhaps because choosing a mortgage is one of the biggest challenges they will face whilst residing overseas.

Help required?

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

Expat Landlords expand UK holdings. One in five expats intend to expand their buy-to-let portfolios in 2024/25, according to research. Also the Northwest is emerging as the most tempting region.

The study found more than one in three expat landlords (33%) plan to buy in the Northwest, beating the Southeast and Yorkshire & The Humber.

Regions reporting a higher proportion of buyers than sellers in the next 12 months included the East and West Midlands plus the Southwest and Northeast.

Mostly expats will release equity from existing properties to buy more rental properties, although 76% of expat landlords with more than 2 properties plan to fund purchases this way.

Expats see the value using a broker

Brokers continue to dominate the market – almost 73% of expats used a mortgage broker or intermediary to arrange their last BTL mortgage. Just a fifth went direct to a lender.

Expats with 2 to 3 properties or more were the most likely to use brokers as they have seen the benefits in the past.

This would confirm the increasing professionalisation of the expat buy to let market meaning landlords are becoming more focused and selective in where they buy properties and how they fund their purchases.

Recent rate reductions across the expat buy to let market are highlighting the opportunities to increase portfolios and profitability as well as underlining the need for expert advice from brokers particularly among landlords with bigger portfolios.

Can we help?

If you wish to review your current or future mortgage planning do call.  One of our fully qualified independent advisers. We look forward to helping you.

Record high expat mortgage applications are showing in figures. Expat first-time buyer activity reached a 2 year high at the end of July this year after soaring more than 40% on the same period in 2023. In July alone the expat mortgage industry saw an increase in applications for new mortgages rise by 38%. These figures go to prove that expat’s still see property in the UK as their number one investment, and it is little wonder when you see the growth the market has shown over the last 10 years.

The UK housing market keeps going from strength to strength. This growth is likely to continue due to the chronic shortage of quality homes for sale. If this continues to be the case in the future property prices will remain high and increase accordingly.

Record High Demand

Estate agents around the country are reporting a high demand for low end quality properties with first-time expat buyers being very active.

The UK property market continues on an upward spiral with record high expat mortgage applications. This offers longer term growth and security. Mortgage lenders are offering good interest rates to attract new business, so if you are contemplating investing now would seem a good time to buy in the UK.

 There is little doubt the attractive mortgage interest rates currently on offer have played a key role in driving these figures.

Expat borrowers have taken advantage of the current rates and used a re-mortgage in particular to their benefit.

Interest rates are certainly in the borrower’s favour at present but there is always a lot of debate of how long these rates will last. All of this in mind it could be a very shrewd move to consider your own mortgage position. It is very commonplace for clients with a mortgage to just leave it as they are not aware of the savings that could be achieved with a re-mortgage.

As an expat do check your current mortgage as you could be paying more than you need to!!

Can we assist you?

If you are looking for help with your new or re-mortgage, please do contact us. One of our fully qualified independent advisers and they will be happy to guide you.