Sustained growth for expats

The mortgage market for expats grew between October and November after the first interest rate rise for a decade with approvals up 2.5% month on month, the latest data shows.

It may have been a case of expat borrowers looking to switch from variable rate products and lock into lower fixed rate deals.

However, approvals are still well up compared to the same period a year ago and the number of borrowers with small deposits, usually first-time buyers, being approved continued to increase steadily.

After months of speculation, the Bank of England base rate increased to 0.5% and this prompted many people to switch their mortgage and lock in a low rate. Overall approvals have increased month on month and we expect this to continue as those expats on variable rate mortgages see their monthly payments increase.

While the mortgage market has continued its impressive recent performance, there are concerns about first time expat buyers and those with small deposits being squeezed due to sky high purchase prices. Their share of the market continues to fall, which shows how important it is for lenders, Government and builders alike to do more to support buyers.

Yorkshire offered the best chance for first time buyers and other people with small deposits to get onto the property ladder. 26.3% of all loans went to this part of the market during November, a higher proportion than any other region.

Yorkshire was one of only two regions to see more or an equal proportion of loans go to small borrowers than their larger deposit counterparts, the other being the North West. In the North West 25.7% of loans went to this segment versus 25% to large deposit borrowers while in Yorkshire the ratio was 26.3% for both.

Help required?

If you are an expat looking for a new or re-mortgage, please make contact and one of our advisers will be happy to help.