Question – I’m an Expat can I get a mortgage on a UK property?

Scenario

I want to get a residential mortgage and have a deposit of about £75,000. I am self-employed, a UK resident and earn – and pay tax on – all of my earnings in the UK.

However, I am currently in Asia and am mostly paid by US-based organisations.

Is there any hope for me?

Answer

It is perfectly possible for you to get a mortgage while working abroad.

You just need to use a mortgage adviser who is familiar with what are called expat mortgages. These are mortgages for UK nationals who, like you, are working abroad but want to buy property in the UK, whether it’s on a residential or buy-to-let basis.

UK expats do find it harder to get a mortgage than Britons on the mainland. Harder, yes, but not impossible, especially when you use a specialist expat broker who knows which lenders are likely to lend to you and which will do so on the best terms for your personal circumstances.

A specialist should be able to help with interest-only mortgages, financing for the self-employed, buy to let, unusually constructed properties and unusual mortgage terms.

Like to know more?

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

 

Are you looking to be an expat first time buyer?

Expats living overseas are very keen to purchase property in the UK as the market continues to show good growth.

Mortgages are easier to come by than they were 2 years ago plus interest rates are at an all-time low.

Expats who own property abroad have had a worrying time of late as property prices in some European countries have fallen at alarming rates. The uncertainty in Europe is without doubt down to the weak Euro and poor economies of some countries.

First time buyers looking to break into the UK market are finding it very difficult as property prices continue to rise. A recent survey conducted for major high street estate agents shows lower end market properties are being snapped up by buy-to-let investors. It is no secret that the UK property market is currently under siege from the buy-to-let investor and looks set to continue for the foreseeable future.

What to do?

Suitable first-time purchases are almost impossible in the London and South-eastern areas so prospective buyers are looking further afield.

A major estate agent chain recently commented “It is still possible to buy a reasonably priced property in the London commuter belt if you look hard enough”. “Clients who are prepared to look outside the box are having a great deal of success”.

This coupled with some extremely good mortgage deals available have given expats a “window of opportunity” it would seem. The message that seems to come from all this is to act as quickly as possible before this avenue closes.

Mortgage advice?

If you require any assistance with your first time or re-mortgage please do not hesitate to contact one of our fully trained independent advisers who will be happy to help.

Expats are taking advantage of the independent broker

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 lenders requirements much quicker.

Why independent?

Very simple you will have a much bigger choice of deals as an independent is not tied to any one company.

2021 has seen a large increase of 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.

Expat mortgages are now easier and quicker to complete

The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 2 years.

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 6 weeks which is significantly quicker than this time last year.

Like to know more?

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

 

Expats who use a broker normally save money

A recent survey has claimed that thousands of expat borrowers could be missing out on a better deal by not speaking to an independent mortgage adviser when looking for a mortgage.

Its survey of over 2,000 expats found that 33% of consumers who went direct to a lender didn’t understand how a mortgage adviser could help with their search.

The findings also showed that 67% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years and 74% stayed put because they felt they had ‘a good deal’. However, without seeking independent mortgage advice, these individuals would have missed out on mortgages deals that are only available through an independent mortgage adviser.

There are plans to use the research to tackle the misperceptions about independent mortgage advisers and raise awareness about how they can help borrowers to find the right mortgage for their needs.

Far more choice and much quicker

Borrowers going through an independent mortgage adviser have access to many more mortgages than those going direct to the lender, including specialist mortgages for the self-employed and later life lending solutions such as lifetime mortgages..

Homeowners who benefitted from a mortgage adviser searching the market for the best mortgage deal were more likely to have switched in the last five years (29%), compared to just 19% of those who went direct.

Borrowers who used a mortgage adviser were also overwhelmingly in favour of doing so again. 98% said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using a mortgage adviser to family or friends.

Help required?

If you would like to review your current expat mortgage please do make contact and one of our expert independent advisers will be happy to guide you.

Who needs an expat mortgage? 

If you wish to buy a property in the UK and live abroad you need an expat mortgage.

Britons living abroad, either temporarily or permanently, will need to obtain a mortgage from a lender that has chosen to lend to expats.

Typically, expats are looking to invest in buy-to-let property whilst living overseas, perhaps to provide an income in retirement or even to live in upon their return.

Whilst fluctuating exchange rates can, at times, provide a good opportunity for investors, it is also true to say that many expats earn better salaries abroad than they would do here in the UK. A lower cost of living means they have more disposable income and want to invest in UK property.

Value for money

The UK property market still offers really good value for money if you own a property or can afford to buy one. Anybody who has owned a property in a good area of the UK over the last 10 years would have seen their investment grow substantially.

Traditionally the UK property market has always offered good value long term investment potential and there is no reason to believe this will not continue long into the future. The only unknown factor is what will happen after Brexit has concluded and how any deal will affect the housing market.

Sound investment?

As years gone by the UK offers long term profitability and there really is no reasons why this should not continue for many more to come.

Mortgage advice?

If you need assistance with a mortgage then call our expert independent advisers who are waiting to help.

 

Best returns for Expats!

Eight out of ten of Britain’s hot shot fund managers – in charge of active UK investment funds – would have been better off simply investing in bricks and mortar, according to a recent financial survey.

That’s despite the strong rises seen in the stock market over the past year, with the FTSE 100 ending 2020 at over 7000 points.

Analysis revealed that only 30% of fund managers (95 out of a total of 239) have beaten average house price growth of 26% since Dec 2013, across 100 major UK towns and cities.

Long-term a better bet

The housing market has also outperformed stocks over the last 20 years. Since 1996, the average property went up in value 304% while the FTSE All Share gained 270%. Top performers over the last two decades were Brighton and Hove on 510% beating London on 485% which was followed by Watford on 460%.

Over the past few years’ bricks and mortar has once again proved itself to be an investment to rival them all, capable of significantly outperforming the riskier forays of stock market speculators.

Active fund managers use vast amounts of in-depth research to find hidden value in companies, but just by sitting on their properties, homeowners and residential property investors have beaten most of the very best investment minds in the UK.

Can we help?

If you are looking for a new or re-mortgage, please make contact and one of our qualified representatives will be happy to assist.

 

Plenty to please Expats! Best investment option by far!

The average price of a house in the UK now stands at £230,700, some 30% above the market peak seen in 2007, the house price index has revealed. 

On a yearly basis house price growth was up 5.4% year-on-year in June, more than double the 2.2% year-on-year price growth seen 12 months ago.

The data shows that prices are being propped up, in part at least, by a chronic undersupply of properties coming to market.

There has been a 25% fall in the volume of homes for sale in the first half of the year when compared to the same period last year. Supply has failed to keep pace with demand since January 2021.

Transaction volumes however remain strong – up 22% on the average levels seen in 2020.

That said, buyer demand dipped 9% in the first half of July after the initial stamp duty holiday ended, but overall remains elevated – up 80% compared to the average for this time of year in the more ‘normal’ market conditions in 2017-19.

Price growth is expected to edge upwards to 6% in the coming months before easing back towards the end of the year as the impact of the extended stamp duty holiday unwinds and the economic landscape becomes more challenging.

A number of factors will continue the elevated demand for houses through to the end of Q4, including ongoing buyer preference for more space.

What about the expat mortgage market after Brexit?

The market so far has been largely unmoved by Brexit. Lenders have continued to drop interest rates across the board since last summer which indicates a lack of concern currently.

There seems to still be a large appetite for banks to lend. The rates are very competitive and there are still plenty of high loan-to-value mortgages available to consumers.

If anything is to bring this to halt then it would be the Bank of England base rate rising. If the bank were to raise rates from 0.25 per cent to 0.5 per cent, the impact would be greater than just a rise in mortgage repayment, because inevitably confidence will take a hit. Yet so far, there have not been any firm indications that this is the way the Bank of England wants things to go.

If you are an expat with a mortgaged property in the UK now is a great time to lock in a new deal for the next few years and make the most of the low rates on offer.

Expats re-mortgaging to secure the future

Expat re-mortgaging levels have soared to an eight-year high in September as borrowers take advantage of lower monthly repayments the latest figures have revealed.

The value of re-mortgaging fell due to a drop in the average loan size, but with overall mortgage activity down it still accounted for two-fifths of total lending in June this year.

Expats who have not reviewed their current mortgage deal recently would be well advised to do so as rates are expected to rise in the future.

Help required?

If you would like to review your current mortgage please do make contact and one of our fully experienced independent advisers will be happy to assist.

 

Expats, does your mortgage need reviewing?

Best advice is to get it reviewed to ensure you are on the best deal.

The low rates on offer will NOT last forever – act now and save.

A former Bank of England Monetary Policy Committee member has predicted that interest rates could rise significantly in the next few years.

Inflation has now caught up with wage growth causing a sharp consumer slowdown and the weak pound has also squeezed consumers and the expectation is that households will adjust their spending downwards.

More and more expats are looking for ways to reduce their monthly outgoings. One of the biggest expenses most people have every month is their mortgage payment.  Keeping this in mind it would be a wise move to review your current mortgage to ensure you are on the best deal possible.

This will not be the case for everybody, your current deal may well be particularly good, but it is most certainly worth checking before the end of the year.

It is highly recommended to seek professional independent advice as to what new deal could suit your current situation.

Reasons to consider a re-mortgage.

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • Transfer to a fixed medium/long term deal

Help required?

If you would like to review your current mortgage deal please do make contact and one of our independent advisers will be happy to assist.

Expats who do not review their mortgage could be paying 1000’s more!!

Now more than ever expats are looking for ways to reduce their monthly outgoings, one of the biggest expenses most people have every month is the mortgage payment.

As an expat there is a lot of uncertainty at the moment with poor exchange rates and the Brexit situation taking time to settle. It may be a very prudent move to review your current mortgage to establish if it is still the best deal for you, and you are not paying more than you need to.

This will not be the case for everybody, your current deal may well be exceptionally good, but it is most certainly worth checking as the wrong deal could be costing you thousands extra every year.

Expats have an excellent choice of mortgage deals currently available, so it is a particularly good time to check you are not paying more than you need to.

If you decide to re-mortgage this may an opportune moment to review any expensive loans and credit cards you may have. It is likely the UK property has gained in value giving you a larger equity which could be used to reduce the expensive debt.

Reasons to re-mortgage

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • You want to pay more to clear the loan earlier and the lender will not permit this.

Can we help?

If you would like to review your current expat mortgage do make contact and one of our fully qualified independent advisers will be happy to assist.