There was a 0.9% rise in house prices on a monthly basis in January.

This comes off the back of two monthly price drops in a row and gives an annual rise of 6.3%, leaving the average property asking price at the start of 2023 at £362,438.

Additionally, the number of would-be buyers contacting agents being up 4% on January 2019, while the number of people looking to buy contacting estate agents was 55% higher than the two weeks before Christmas 2022, making for the biggest ‘New Year bounce’ for this metric since 2016.

The numbers certainly suggest that activity has bounced back after Christmas and agents will now be busy trying to match the likely revised expectations of buyers and sellers as we move towards the important spring season.

It is expected that the full effect of affordability constraints and last year’s mortgage rate rises will hold back some segments of the market in the first half of the year, but the outlook is positive.

After two months of falling asking prices, it’s tempting to see this as a change of market dynamics, but that’s likely to be unrealistically optimistic. January always tends to see a bounce in the market, as people decide to make change in the new year, so this may just be a blip.

The return of more buyers is worth keeping an eye on. It may be that some of those who fled the market when mortgage rates went through the roof have been persuaded to come back as those rates have come down from the peak.

The return of buyers could mean house price falls aren’t quite as bad as had been predicted.

If you are in need of expat mortgage advice, please do make contact and one of our independent advisers will be happy to help.

Expats are releasing equity

Expat mortgage business is very buoyant currently and in particular the re-mortgage area as expats look to released locked capital within their UK properties.

A recent report shows the average amount released currently stands at 46,000 per case as of December last year and the number of re-mortgages rose by 21.3% year to date.

The report shows December 2022 witnessed a very strong month for mortgage lending within the expat community as house buyers rushed through purchases. This high activity is attributed to the weaker pound and expats seeking new investment opportunities.

Our director of operations commented “It would seem expats have re-mortgaged their current UK property to raise funding for further purchases within the buy-to-let market”. “The surprising thing is re-mortgage business has remained very strong at the start of 2023 as well”.

Over the coming week’s speculation about the possibility of rate rises will continue to dominate the news and have an unsettling effect on the markets. However, this should not dissuade people from re-mortgaging if there is a financial benefit to the borrower.

There are many very good re-mortgage deals on offer currently with extremely good interest rates being available. If you are considering a re-mortgage, it may well be prudent to explore what fixed deals are on offer as at some stage interest rates are likely to rise.

Can we help?

 If you are contemplating a new or re-mortgage, please do make contact with one of our fully qualified independent advisers who will be happy to assist.

 Expats who avoid reviewing their current expat 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.

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

 Use an independent broker

Expats are now using an independent broker more than ever before to secure their deals whether it be a new or re-mortgage. A recent survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

2022 has seen a large increase of approved mortgage applications compared to the same period last year. These increases show how restrictions are being eased by lenders as they compete for every single bit of business

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates even further is a real possibility. All this news is giving the expat borrower confidence in re-mortgaging for the longer term. 

Like to know more?

If you require help with your new or re-mortgage, please do contact one of our fully qualified independent advisers who will be happy to assist.

Overseas investors continue to benefit from the weakening pound.

For those foreign nationals paying in US Dollars, the average UK home now costs 14.8% less, with the average London property costing 16.5% less

While domestic buyers will feel the effects of a weak pound across the board on any imported item they buy, a weak pound is leaving property comparatively cheaper despite house price growth.

For example, in London, prices have risen by 4.9% so far in 2022. However, foreign nationals buying in US dollars are paying a sixth less than at the start of 2022. Buyers in the UAE are benefitting to almost the same degree saving 14.5% on the average UK property and 16.2% on the average London property, while Hong Kong buyers are saving 13.9% and 15.6% in their native currency.

Investing in UK property is one of the best financial decisions that UK expat and foreign national investors can make – and the enduring popularity of this form of investment is testament to this. The weak pound is only making this proposition more inviting and, along with a competitive UK expat and foreign national mortgage market, is doing a lot to offset the damage done by house prices and mortgage rates.

For canny UK expat and foreign national investors, it’s important to keep track of the market developments as things are changing every day, and the turbulent political scene is influencing a lot.

Need some assistance?

If we can help with your new mortgage or re-mortgage, please call one of our fully experienced independent advisers, we are here to help!

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.