New research reveals that expats and foreign nationals are snapping up UK property, while the pound is weak, prices remain affordable outside London and the South East.

The new figures show that there has been a 20% year on year increase in expats and foreign nationals investing in UK property. These buyers are investing in both buy-to-lets and first, or second homes.

The research also reveals that in 2020, 60% of expats and foreign nationals buying property in the UK, opted for the Manchester area, while 25% choose Birmingham.  However, London has seen a 60% drop in buyers, this is the result of high property prices and poor rental yields, compared with other regions of the UK.

What may surprise many is that in real terms, property prices in the UK have fallen compared with a decade ago and there is a huge North-South divide. In London, the average property value has risen by nearly 70% in 10 years, whereas some other areas have fallen as much as 40%.

This growth in investors is partly down to the availability of a wider selection of mortgages designed for working expats and foreign nationals. Investors are also attracted by the UK’s robust legal system for property acquisition, which makes it one of the easiest places in the world to buy property.

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If you would like to know more about the range of mortgages available to expats, both new and re-mortgage please do make contact. We have a fully experienced and qualified team waiting to assist you.

May 2022 has seen more expat mortgage business being conducted than this time last year. New applications for first time and re-mortgage business are also high for the time of year indicating expats still have faith in the UK property market.

Mortgage rates are at a record low fuelling the increase in business being done in all sectors of the mortgage market. However, experts are predicting rises in rates are on their way sooner rather than later.

May has seen a record number of expat re-mortgages as clients look to release equity built up over the years within their properties. The released equity is being used for various reasons including debt consolidation and funding their children’s education and house deposits.

Expats are also re-mortgaging to fix the rate of their loan for the longer term.

Confidence is high within the European expat community at present especially with those who own a property in the UK.

If you are considering taking out an expat mortgage or re-mortgaging, please call us and one of our advisers will be happy to assist.

UK property prices still increasing

According to the latest figures house prices are still on the rise, April/May saw an average 5% increase.

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

 There was a surge in re-mortgage activity in February to May this year of this year, as expat borrowers look to lock into cheaper deals ahead of an expected interest rate rise.

 Since the financial crisis in 2008 mortgage rates have steadily fallen.

However, with the Bank of England hinting that it could raise interest rates in the near future and economists are predicting a hike could come as soon as July/August of this year and beyond.

Record low mortgage rates continue to sustain market activity, many of the Bank of England’s Monetary Policy Committee are now adding to the calls for an interest rate rise, this picture could very quickly change.

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

The number of expat mortgages approved also went up this year, suggesting the market is picking up steam now the Brexit outcome has been resolved.

Expats who avoid reviewing their current 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.

Contact us.

If you would like to review your current mortgage please make contact and one of our independent advisers will be happy to help.

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

If these figures are achieved it follows the trend of this 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

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 one 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.

Double digit annual growth means the equity in many homeowners’ properties will have increased a great deal in the last two years.

Figures show since the start of the pandemic the average home has increased in value by £47,568.

Many homeowners will therefore be in a position to move up an ‘LTV band’. LTV or – loan-to-value (LTV) ratio – refers to the proportion of your property’s value you need to borrow.

It maybe you are a few hundred pounds away from being able to change to a 75% LTV band which will mean you can get much better rates. Speak to an independent adviser as they can help you to achieve this.

Will the cost-of-living crisis impact my re-mortgage affordability?

There’s another reason why it’s worth re-mortgaging now rather than in a few months’ time. The cost-of-living crisis means many of us are noticing a big difference to our day-to-day spending.

From an extra £10 when you fill up your car, to the cost of your supermarket shop going up each week to the knowledge you are going to be paying an additional £600 or more on your heating bill over the year – you will probably be paying out more now than you were when you took out your mortgage.

Although lenders assess living costs when assessing mortgage applications, many have not yet updated their affordability calculators to take the current situation into account.

Therefore, by re-mortgaging now you can take advantage of a some offers which many will not there in a few weeks.

Mortgage offers last, in general, for six months. For new builds it might be longer. So, if your mortgage is due to expire in the next six months you can lock into a better deal whilst conditions are good.

Need help?

Please do make contact and one of our independent advisers will be happy to assist.