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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.

 

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Expat re-mortgage surge in 2022

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Figures just released show expat re-mortgage business is at an all-time high. Looking back at the start of 2020 re-mortgage applications to date this year are 31.5% higher and still rising.

A recent survey highlighted that 37% of all expats re-mortgaging saved on average £287.00 on their monthly payments. I think we would all agree that is worth having. Many also re-mortgaged to fix their monthly payments as they feared an interest rate rise was inevitable.

Many expats whilst re-mortgaging released capital that had accumulated over the years, the average amounted to £21,000 per case.

Top reasons for re-mortgaging

  • Better rate of interest (Reduce monthly expenditure)
  • Change to a fixed rate (Secure set payments)
  • Raise cash to pay off expensive loans (Reduce monthly expenditure)
  • Reduce or clear credit cards (Reduce monthly expenditure)
  • Raise cash to assist child secure a mortgage (Help with deposit)

It is very encouraging to see borrowers taking more control of their finances and seeking advice as to the best way forward. In the past many homeowners who had secured their mortgage deal just forgot all about it and “buried their heads in the sand”.

There are so many pros and cons to re-mortgaging and all aspects need to be carefully considered to ensure it is beneficial for you.

Always seek professional advice from an independent mortgage adviser who will guide you in the right direction, a wrong move could be very costly in the long term.

Need some advice?

If you are considering a new or re-mortgage and require some help please do call one of our fully qualified independent advisers.