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

The survey of over 1,200 expats revealed that 33% who went direct to a lender did not understand how an independent mortgage adviser could help with their search.

The findings also showed that 66% 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 mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through an independent mortgage adviser.

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.

What is more, borrowers going through an independent mortgage adviser have access to far more mortgages 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.

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A major shift in housing needs driven by the pandemic and lockdown has pushed house prices up to their highest levels ever, Nationwide has reported today.

According to the building society’s latest house price index, prices grew by 6.9% annually in February.

This followed a slight slowdown in January when annual prices climbed by 6.4% and prices dipped compared to the previous month.

But February experienced something of a rebound according to Nationwide, with month-on-month growth of 0.3% which ‘more than erased’/ the small decline experienced in January.

It means the average house price in the UK in February was £231,061 which, according to the building society, is the highest on record.

This rise has indeed been a surprise, it seemed more likely that annual price growth would soften further ahead of the end of the stamp duty holiday, which prompted many people considering a house move to bring forward their purchase. While the stamp duty holiday is not due to expire until the end of March, activity and price growth would be expected to weaken well before that, given that the purchase process typically takes several months.

Changing housing preferences

The shift in housing preferences might be responsible for this increase in demand.

Indeed, the lockdown and increasing numbers of people who have begun working remotely, has prompted a shift in preference towards more spacious properties in less densely populated areas.

Far from surrendering its gains, the housing market has launched a surprise attack on previous highs, aided by armies of people who still want to shed the home they discovered was too small for them during repeated lockdowns.

Record high agreed sale prices are a sign that the market is still being buffeted by the unshakeable desire of many to move to larger, more spacious, and more expensive homes.