Expat Mortgages offer Independent Financial Advice

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

The findings also showed that 69% 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 Expat mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser/broker.

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.

It’s a fact that expat borrowers going through an independent mortgage adviser have access to far more advantageous deals 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.

Can we help?

If you are looking for a new or re-mortgaging, please do make contact and one of our fully independent advisers will be happy to assist.

Weak Pound and the Benefits for Expats

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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!

 

 

Huge property price increases will soften the blow for Expats

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House prices lifted by 13.6% in the year to August, valuing the average UK property at £295,903, according to the latest Land Registry House Price Index.

 

Average home prices across the country increased 0.9% over the month from July.

 

In England, house prices rose 1% in the month to August and 14.3% annually taking the average property price to £315,965.

 

While in London, house prices lifted 0.9% in the month to August and rose 8.3% annually taking the average property price to £552,755.

 

In Wales, house prices edged 0.2% higher in the month to August and rose 14.6% over the year taking the average property price to £220,059.

 

Across England, the East Midlands posted the greatest monthly rise with an increase of 2.3%, while the West Midlands saw the lowest monthly price growth, with a fall of 0.2%.

 

The Southwest reported the greatest annual price rise, up by 17%, while the capital’s annual rise of 8.3% was the lowest in England.

 

Value for money

The UK property market without doubt still offers remarkable value for money if you own a property or can afford to buy one.

Anybody who has owned a property in a good area of the UK over the last 10 years would have seen their investment grow substantially. Traditionally the UK property market has always offered good value long-term investment potential and there is no reason to believe this won’t continue.

 

Need some help?

 

If you are thinking of re-mortgaging or want advice on a new mortgage, please do call and one of our fully qualified advisers who will be happy to assist.

 

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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.

 

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Decreasing value of the pound encourages expats

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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.

Can we help?

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.

 

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Expats looking at buy-to-lets for income

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The report from financial intermediaries revealed that 70% of respondents had seen a rise in enquiries from British expats about buy-to-let mortgages for UK property.

These findings reflect the growing demand for buy-to-let mortgages from overseas investors; due partly to the strength of foreign currency against the pound – attributed to the ‘Brexit effect’ – which has created an investment opportunity.

Following Brexit, the pound has weakened against most major currencies including the dollar and euro. Brits living in countries where the currency is pegged to the USA’s, such as Hong Kong have been attracted to investing in property back in their home country.

It was a concern for some that the new rules from the Prudential Regulation Authority (PRA) introduced early this year, which limited the amount expat landlords could borrow and tougher lending tests, would impact demand, but the report would suggest this hasn’t been the case.

What is happening is investors, including expats, are still buying-to-let in Britain, but perhaps focusing on lower loan-to-values and using larger deposits to take the various changes into account, as well as adapting their portfolios and business models to maintain their profitability: for example by looking at up-and-coming areas across the UK instead of the more traditional rental hotspots like London.

Given the strong rental market in the UK and interest rates at an historic low, it appears that expats are still keen to keep a foothold on their home property ladder, and whilst the buy-to-let market has faced a number of challenges recently, those taking a long-term view seem undeterred.

Like to talk over your needs?

If you are an expat looking for a new or re-mortgage please do make contact and one of our qualified independent advisers will be happy to help.

 

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Expat mortgage business remains very strong and stable

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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.