Experts are predicting interest rate increases

There is a lot of evidence to suggest interest rates are going to be rising sooner rather than later. Facts are a sizable number of expats have already transferred to a fixed rate mortgage deal; we have seen a significant increase in re-mortgaging since the turn of the year.

Base rates may well be on hold at present and mortgage rates are at the lowest they have been for many years. One thing is for sure if the bank base rate rises then mortgage interest rates will very soon follow suit.

A recent survey of expats showed that if this happens over 45% are not prepared for the increase in expenditure. The survey also revealed the majority of people have taken for granted the current low interest rates and that they will remain for a good many years to come. This may well be a very dangerous attitude to adopt as things can change very quickly in the world of finance.

It is widely expected in financial circles that interest rates will start to increase in the not-too-distant future, keeping this in mind if you are an expat with a mortgage it would be very wise to review it as soon as possible.

The future

With all the above considered it could be a very good time to look more closely at your current mortgage deal. By acting now you could save a great deal of money now and in the future.

Every expat has unique needs and objectives but one thing we all have in common is saving money. If your current mortgage deal has no exit penalty or is coming to the end of its deal period, you may wish to look at a fixed rate deal. There are currently some very advantages rates on offer so now could be a very good time to act.

Can we help?

If you require assistance or would like to talk over your current mortgage, please do call one of our fully qualified advisers and we will be pleased to assist.

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 1,500 expats found that 31% 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 69% 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.

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.

September this year has seen a record level of expat buy-to-let mortgage approvals as landlords look to increase their portfolios. Our recent survey of expat landlords clearly reveals they are in the market to increase their holdings as quickly as possible. The reasons are numerous for this trend, but landlords are very encouraged by the demand for rental property plus rents are increasing annually.

The survey revealed that over 50% of current expat landlords are achieving net returns of between 6.5% and 8.75% on their current portfolios. This is obviously a much larger return than any traditional savings account can currently offer.

With house values still on the increase year on year landlords are also seeing the equity within their properties increasing at a very good rate. So with all this positivity it is little wonder buy-to-let mortgages are increasing rapidly.

Home ownership in the UK has fallen to its lowest level for over 25 years which may well shock some people. When you look at the overall cost of buying a property in the UK perhaps it is not quite so surprising.

Buy-to-let mortgages

UK and expat landlords are reaping the rewards of lower mortgage interest rates and set up fees. With so much competition in the marketplace lenders are being forced to make very attractive offers to lure clients towards their product.

We always recommend being very selective before deciding on what mortgage best suits your needs. With so many deals on offer it always pays to look at all the options, for example a long-fixed rate deal may be very prudent with the fear of a rate rise looming.

Need some help?

If you need assistance when choosing your next mortgage call one of our experienced independent advisers and we will be pleased to assist.

The number of properties in England and Wales owned by foreign citizens has tripled from 88,000 in 2010 to nearly 250,000, according to new analysis by the Centre for Public Data.

Over 247,000 residential properties across England and Wales are now registered to individuals with an overseas correspondence address, nearly 1% of all registered titles compared to 0.4% in 2010.

The data was obtained from HM Land Registry on the number of property titles owned by individuals with an overseas correspondence address.

Three-quarters are registered to individuals with addresses in just 20 countries, with the main groups being the Crown dependencies and British Overseas Territories, namely Jersey, Guernsey, Isle of Man and the British Virgin Islands, and also more recently South-East Asia and the Middle East, and English-speaking countries.

This is borne out by the current statistics from Guernsey-licensed bank, Skipton International, which specialises in buy-to-let mortgages for non-UK residents.

At the end of October 2021, 35% of their mortgage pipeline was from Hong Kong residents, with Singapore and the UAE also featuring heavily.

The growth in interest in cities such as Newcastle, Manchester, Liverpool and Leeds has also been notable, particularly since 2016.

Skipton mortgage manager Lorraine McLean says: “The UK is viewed by many as a solid, stable jurisdiction and many global investors are looking to the UK residential market.

“In 2019 we extended our UK mortgage proposition to include applications from overseas non-UK nationals and we are now seeing interest from a range of nationalities resident in countries around the globe.”