January 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 very affordable which is 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.

January 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, January and February saw an average 2.7% increase as the UK economy continues to strengthen.

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

 

New year = saving money

Expats with mortgage deals due to expire or who are on their lender’s default rate could save over £2,500 by switching to a fixed product.

That is according to recent report which is encouraging people to re-mortgage. The research found moving from the lender’s Standard Variable Rate (SVR) could save borrowers more than £2,000 in just one year.

This is because, term and do not re-mortgage they automatically default to the SVR which is usually far more expensive. Indeed, if the Bank of England, as is being widely predicted, increases interest rates later this year, it is likely some lenders may also increase their SVR further. With this in mind expat borrowers whose deals are ending or have lapsed to the SVR could benefit from switching to a new fixed-rate deal.

Figures show expats could save £5000 over two years and £7,530 over three years by re-mortgaging to a more advantageous deal.

Is it time to review your mortgage deal?

Mortgage rates are unlikely to improve in the near future so now is the ideal time for borrowers to secure a fixed-rate deal on their mortgage. Borrowers who are on an SVR or coming to the end of their term have the potential to save themselves thousands of pounds on their mortgage, which could easily pay for home improvements or that much longed-for family holiday.

The near all-time low rates will not last forever, the wise expat should look to secure a deal and speak to a broker straight away.

Not only can brokers offer a far wider range of products and options for consumers which they may otherwise not have access to, or the time to find, but their invaluable expertise will be able to help you secure a great deal on your mortgage.

 

 

That’s the question on everyone’s lips at the moment. Reflecting on all that happened in 2021, it most certainly wasn’t the year we thought it would be.

 

Yes, some things seemed to move towards “normal” again, however with the recent rise of COVID cases, as a result of the new Omicron variant, it has proved once again that we don’t know what is waiting around the corner.

 

The specialist lending market has also experienced a great amount of uncertainty over the past year, however one area which has experienced sustained growth over the last 12 months is the high demand for Expat mortgages.

 

The increased demand for this particular product type, will undoubtedly continue into 2022, as the number of investors looking for projects where they can add value and see a quick return continues to grow.

 

With both homebuyers and renters seeking ‘turnkey’ properties that are designed for modern living, there is an opportunity to sell or rent these properties at a premium price.

 

With many investors and developers looking for opportunities to make a larger return on their investment, renovating a property can achieve this by adding significant value to a dwelling.

This is especially true at a time where well-maintained properties, designed to fit the work from home trend, are being snapped up, sometimes within hours of coming to the market.

 

Therefore, looking ahead, we can only see the demand for homes designed for this purpose and in turn finance options available to help achieve this, continue to grow.

All the papers have been full of doom and gloom stories in recent months heralding the death of buy-to-let and a falling housing market.

However, as they say “you shouldn’t believe everything you read in the newspapers” – the UK housing market is still a really safe and lucrative place to invest your hard-earned money. And especially if you are looking for a long-term investment, it’s a safer bet than the more volatile stock market.

Knowledge is key in your decision

Always when considering investing be sure of where your funds are coming from and that you have enough to pay deposits, legal fees and stamp duty. Maybe you already have property and are considering re-mortgaging to free up some equity?

The Bank of England base rate is currently very low and there are still some fantastic two, three, five and even 10-year fixed deals to be had.

One of the main ways banks set rates is based on how cheaply they can lay their hands on the money they lend out. This usually comes from savers or by borrowing on the money markets for a certain rate at a certain period, known as the swap rate.

Swap rates dropped last year because of global economic turbulence and Brexit but have since risen and there is a good chance mortgage rates will start to rise as a result. If you prefer the certainty of a fixed monthly repayment as opposed to a variable rate mortgage this could be for you.

Crucial to success, source a specialist expat independent mortgage broker to help you

As an expat investor you might find it tougher to get a mortgage because you don’t fit standard lending criteria.

A specialist broker will be able to search out lenders other than those on the high street and will know what criteria will fit best with your circumstances. As an example, many high street lenders will turn you down if you don’t have a UK credit history or aren’t on the electoral register. But a niche lender will have different criteria under which you could be eligible.

Can we help?

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

 

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.