The average house price climbed to a new record high of £276,759 at the start of the year, despite growth slowing compared to previous months, according to the latest Halifax house price index.

House price growth fell to an increase of just 0.3% in January, the lowest rise since June 2021, while growth remained steady on an annual basis at 9.7%.

Transaction levels rebounded to those seen before the pandemic, and overall, prices were up £24,500 compared to this time last year. They were £37,000 higher than in 2019.

Following the peak activity of 2021, transaction volumes are returning to more normal levels. Affordability remains at historically low levels as house price rises continue to outstrip earnings growth.

Despite record levels of first-time buyers stepping onto the ladder last year, younger generations still face significant barriers to home ownership as deposit requirements remain challenging.

Any predictions that house prices were going to start to pull back once the stamp duty holiday was no longer in play have been proved very wrong.

However, the Halifax house price index released today shows that significant house price rises are starting to slow with only a 0.3% month on month rise, which is the lowest since June 2021. While forecasts of a housing price reduction have not yet fully materialised, it seems inevitable that there will be some sort of slowdown in the coming year

London’s property market has continued to see record numbers of buyers throughout January. A strong indication that the market will remain at high activity levels in the first half of this year.

Whilst larger properties or homes with outside space remain sought-after, apartments in some of London’s more central boroughs are experiencing a steady comeback. This is particularly driven by professionals who are returning to the office and are seeking a home nearby.

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 should you look for an 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.

Last November’s gross mortgage lending to expats has increased by 4.8% from last month, this is the fourth month on the run. In addition to the month on month increases lending this year has increased 16.4% overall.

Experts believe these strong figures are down to the Brexit negotiations being concluded.

There is definitely less confidence in the property values of other European countries.

Property continues to gain value in the UK at a steady rate and looks like continuing for the foreseeable future unlike the rest of Europe.

One other factor that has contributed to this robust growth is the number of re-mortgages completed. Both expats and UK residents are living in the fear that interest rates are about to jump. These fears are justified as already a good many long-term fixed rate deals have been withdrawn from the market but there are still some very attractive deals on offer.

UK property offers stability

The UK property market without doubt still offers 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.

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 2022 and beyond is very positive within the UK property market, the signs are this will continue for the foreseeable future.

To sum up – traditionally the UK property market has always offered excellent value long term investment potential and there is no reason to believe this won’t continue.

Mortgage advice?

If you need assistance with a new or re-mortgage, then please contact our expert independent advisers who are waiting to help.

So, last week it finally happened. After months of speculation the Bank of England put interest rates up to 0.5%.

It’s just a small tweak which may take a while to filter through to the mortgage-paying public but it’s enough to give many of us that unsettling feeling that, at some, point we may start paying more for our home loan.

As an Expat if you are currently on a fixed rate mortgage, you’ll be sheltered from any rises to the Bank of England (BoE) base rate until your deal ends. If you are locked into a five-year deal and are at the beginning then you’ll be safe for some time.

If, however, your fixed rate is due to finish in the next year you may be concerned about the potential for future rate rises. Indeed, the predictions suggest more interest rate increases may follow in the next couple of years.

For those on a variable rate deal – sometimes known as tracker mortgages – experts believe lenders will pass on the BoE’s rate hike in the next few months.

The same applies if you are on your lender’s standard variable rate (SVR) – which will be much higher than the average tracker rate. Research found borrowers on a SVR could see an additional £324.48 added to their mortgage annually following the base rate rise.

Whilst re-mortgaging before your deal ends means you may have to pay hefty exit charges (known as early repayment charges or ERCs), Expats are reminded borrowers you can arrange your new deal up to six months before your current one finishes.

Speak to a broker

Whether you are a first-time buyer, moving home or just trying to manage the repayments on your current deal it’s a good idea to speak to an independent adviser if you are looking for further information and access to a wide range of mortgages.

House prices will rise between 3% & 5% across the UK next year, according to figures released by one of the major high street banks.

If these figures are achieved it follows the trend of last year, the report states increase in values could be stifled by the possibility of interest rate rises. Another factor that could possibly slow growth down is first time buyers being unable to get onto the property ladder.

As an expat with property in the UK if you compare this annual growth to what could be achieve from an investment in any high street bank, property looks a particularly good bet indeed.

Interestingly the report states they expect growth to slow slightly more in central London than elsewhere. The reason for this is the sheer lack of earnings to meet the rising costs of property. People looking to move into London and the surrounding areas just cannot get jobs that pay enough to support any form of mortgage.

Property in very short supply

There has been and still is a shortage of supply which constrains activity in the housing market and levels of house building remain low.

It is believed due to the shortage of property available that house prices will remain stable for the foreseeable future which spells good news for expats with property in the UK.

Mortgages for the Expat

Expat mortgages remain relatively easy to obtain with a good selection of products available. This is expected to remain constant for the coming year with the prospect of two new lenders entering the market.

Need some help?

If you require any assistance with your new or existing mortgage please do call one of our fully qualified independent advisers who will be happy to help.