yacht crew expat mortgages

Expat Landlords

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Recent figures show that an estimated 220,000 expats own property in the UK and the vast majority let their properties out to achieve extra income.

Expat landlords could be looking at reduced profitability on two fronts, firstly taxation and secondly an interest rate rise which looks likely.

One client of ours we recently spoke to said “as an expat with 3 rental properties I am returning to the UK for a meeting with my accountant to review the new tax laws on buy-to-lets”. “I am also currently reviewing my mortgages with a view to fixing a rate for as long as possible”.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to review all aspects of your UK property.

In the last 3 weeks we have seen a big increase of enquiries into buy-to-let fixed rate deals. Good news is there are still some very good deals to be had which could assist you protecting your profitability.

Way forward as an Expat Landlord

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws coming into force since Brexit. Secondly completely review your current mortgage deal to make absolutely sure the deal you have meets your needs now and the longer term. It may very well be you currently have the correct mortgage, but it won’t do any harm to check it out.

By just completing these two simple tasks you could very well save yourself thousands of pounds over the next few years.

Need some mortgage advice?

If you wish to review your current mortgage please do contact one of our qualitied independent advisers and we will be pleased to help.

yacht crew expat mortgages

Expat Re-Mortgages

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Expats are releasing equity

Expat mortgage business is very buoyant currently and in particular the re-mortgage area as expats look to released locked capital within their UK properties.

A recent report shows the average amount released currently stands at 46,000 per case as of December last year and the number of re-mortgages rose by 21.3% year to date.

The report shows December 2022 witnessed a very strong month for mortgage lending within the expat community as house buyers rushed through purchases. This high activity is attributed to the weaker pound and expats seeking new investment opportunities.

Our director of operations commented “It would seem expats have re-mortgaged their current UK property to raise funding for further purchases within the buy-to-let market”. “The surprising thing is re-mortgage business has remained very strong at the start of 2023 as well”.

Over the coming week’s speculation about the possibility of rate rises will continue to dominate the news and have an unsettling effect on the markets. However, this should not dissuade people from re-mortgaging if there is a financial benefit to the borrower.

There are many very good re-mortgage deals on offer currently with extremely good interest rates being available. If you are considering a re-mortgage, it may well be prudent to explore what fixed deals are on offer as at some stage interest rates are likely to rise.

Can we help?

 If you are contemplating a new or re-mortgage, please do make contact with one of our fully qualified independent advisers who will be happy to assist.

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Expat With UK Mortgage ?

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Mortgage rates for Expats are unlikely to improve in the near future, so now is the ideal time for Expats to secure a fixed-rate deal on their mortgage.

 Expats who are on a standard variable rate (SVR) or coming to the end of their term have the potential to save themselves thousands of pounds on their mortgage.

Is it a good time to buy in the UK?

The very quick and simple answer is yes.

The affordable properties that are available to purchase seem to be diminishing on a daily basis, which without doubt will mean higher prices to pay in the future. The good thing is there are still some particularly good mortgage deals around for expats so it could be the right time to start your search.

What does a mortgage broker do for expats?

Essentially, they are there to help expats find the best mortgage deals in the UK. They aim to make that as simple and stress-free as possible, looking at each person’s situation and finding the best product to match their needs. Being independent is essential as they will have access

Need assistance

If you are an expat looking to secure a mortgage in the UK, please do make contact and one of our qualified independent advisers will be pleased to help.

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Review Your Expat Mortgage Deal

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 Expats who avoid reviewing their current expat 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.

A “wait and see” approach is best avoided for existing expat UK homeowners considering re-mortgaging.

 Use an 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. A recent survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

2022 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

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates even further is a real possibility. All this news is giving the expat borrower confidence in re-mortgaging for the longer term. 

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.

 

Expat Mortgages offer Independent Financial Advice

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Thousands of expat mortgage borrowers could be missing out on a better expat mortgage deal by not speaking to an independent adviser, research has found.

The findings also showed that 69% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years, while 74% stayed put because they felt they had a ‘good deal’.

Without seeking independent Expat mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser/broker.

The analysis showed that the mortgage industry still needs to demonstrate the value of independent mortgage advice to expat borrowers – just 30% of those who went direct to the lender said that they would likely speak to a mortgage adviser next time.

Meanwhile, 60% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower, and just over a third (34%) thought an independent mortgage adviser was there to support the lender.

It’s a fact that expat borrowers going through an independent mortgage adviser have access to far more advantageous deals than those going direct to the lender.

Expats 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 one in five (19%) of those who went direct.

Expats who used a mortgage adviser were also in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Can we help?

If you are looking for a new or re-mortgaging, please do make contact and one of our fully independent advisers will be happy to assist.

Weak Pound and the Benefits for Expats

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Overseas investors continue to benefit from the weakening pound.

For those foreign nationals paying in US Dollars, the average UK home now costs 14.8% less, with the average London property costing 16.5% less

While domestic buyers will feel the effects of a weak pound across the board on any imported item they buy, a weak pound is leaving property comparatively cheaper despite house price growth.

For example, in London, prices have risen by 4.9% so far in 2022. However, foreign nationals buying in US dollars are paying a sixth less than at the start of 2022. Buyers in the UAE are benefitting to almost the same degree saving 14.5% on the average UK property and 16.2% on the average London property, while Hong Kong buyers are saving 13.9% and 15.6% in their native currency.

Investing in UK property is one of the best financial decisions that UK expat and foreign national investors can make – and the enduring popularity of this form of investment is testament to this. The weak pound is only making this proposition more inviting and, along with a competitive UK expat and foreign national mortgage market, is doing a lot to offset the damage done by house prices and mortgage rates.

For canny UK expat and foreign national investors, it’s important to keep track of the market developments as things are changing every day, and the turbulent political scene is influencing a lot.

Need some assistance?

If we can help with your new mortgage or re-mortgage, please call one of our fully experienced independent advisers, we are here to help!

 

 

Huge property price increases will soften the blow for Expats

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House prices lifted by 13.6% in the year to August, valuing the average UK property at £295,903, according to the latest Land Registry House Price Index.

 

Average home prices across the country increased 0.9% over the month from July.

 

In England, house prices rose 1% in the month to August and 14.3% annually taking the average property price to £315,965.

 

While in London, house prices lifted 0.9% in the month to August and rose 8.3% annually taking the average property price to £552,755.

 

In Wales, house prices edged 0.2% higher in the month to August and rose 14.6% over the year taking the average property price to £220,059.

 

Across England, the East Midlands posted the greatest monthly rise with an increase of 2.3%, while the West Midlands saw the lowest monthly price growth, with a fall of 0.2%.

 

The Southwest reported the greatest annual price rise, up by 17%, while the capital’s annual rise of 8.3% was the lowest in England.

 

Value for money

The UK property market without doubt still offers remarkable 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 won’t continue.

 

Need some help?

 

If you are thinking of re-mortgaging or want advice on a new mortgage, please do call and one of our fully qualified advisers who will be happy to assist.

 

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Expats are very active in the UK property market

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Expats are in ever increasing numbers trying to either get on the ladder or increase their current UK property holding. The majority of expats see property in the UK as a “pension fund” or a way of laying financial security for the long-term future.

Bricks and mortar have always been a national obsession. The wisdom that property is fundamentally a very good long-term investment has been passed down from generation to generation.

Applications

Expat mortgage applications are currently at an all-time high and the outlook for 2022/23 remains positive.

It would seem that the high property prices do not deter the investor. Expats seem to have the attitude that investing in savings accounts are a lost cause and property offers far better returns in the long run.

According to recently released figures the UK property market has been the best performing in the whole of Western Europe. It is therefore not surprising that so many people want to invest in an ever-shrinking market.

Need assistance?

If you require help with your current or new mortgage please contact one of our experienced independent advisers who will be happy to assist.

 

 

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Expats who use a broker for their mortgage are likely to save money

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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 1,000 expats found that 38% 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 62% 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.

 

 

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The future for expats with property in the UK.

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So what has been going on?

Conventional wisdom would suggest that in a period of economic uncertainly, rising unemployment and eye-watering levels of government borrowing we would see a fall in property prices or at the very least a much-subdued market.

The Land Registry statistics are based on all completed sales many of which are cash sales that do not involve a mortgage.

The Halifax and Nationwide statistics are based only on transactions involving a mortgage. Typically about a third of sales are for cash and this proportion is even higher in retirement areas.

The Nationwide index is statistically weighted to compensate for this, so we have the Land Registry saying prices have risen 7.6% and Nationwide closely shadowing this saying 7.3%.

Halifax is much lower at 6% although the Halifax average price is higher than the Nationwide’s.

What they all agree is that 2021 saw a significant increase in house prices.

Interest rates

The main factor driving the housing market is the current historically low level of interest rates and the fact that mortgage lenders were able to continue to support the market by lending throughout the pandemic.

These low interest rates will not last forever!!

Can we help?

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