So, last week it finally happened. After months of speculation the Bank of England put interest rates up to 0.5%.

It’s just a small tweak which may take a while to filter through to the mortgage-paying public but it’s enough to give many of us that unsettling feeling that, at some, point we may start paying more for our home loan.

As an Expat if you are currently on a fixed rate mortgage, you’ll be sheltered from any rises to the Bank of England (BoE) base rate until your deal ends. If you are locked into a five-year deal and are at the beginning then you’ll be safe for some time.

If, however, your fixed rate is due to finish in the next year you may be concerned about the potential for future rate rises. Indeed, the predictions suggest more interest rate increases may follow in the next couple of years.

For those on a variable rate deal – sometimes known as tracker mortgages – experts believe lenders will pass on the BoE’s rate hike in the next few months.

The same applies if you are on your lender’s standard variable rate (SVR) – which will be much higher than the average tracker rate. Research found borrowers on a SVR could see an additional £324.48 added to their mortgage annually following the base rate rise.

Whilst re-mortgaging before your deal ends means you may have to pay hefty exit charges (known as early repayment charges or ERCs), Expats are reminded borrowers you can arrange your new deal up to six months before your current one finishes.

Speak to a broker

Whether you are a first-time buyer, moving home or just trying to manage the repayments on your current deal it’s a good idea to speak to an independent adviser if you are looking for further information and access to a wide range of mortgages.

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

If these figures are achieved it follows the trend of last 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 for the Expat

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 two 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.

The expat new and re-mortgage market last year saw increased activity especially towards the latter part of the year. Applications for re-mortgages rose by37% over 2020 and have to date continued in the same vein into 2022.

With the value of UK property still on the rise month on month expats have seen this as an opportunity to raise capital for alternative ventures.

It is expected that property values will continue to rise over the next few years albeit at a lesser pace. The Brexit negotiations are completed, and the markets seem totally unaffected with the outcome.

The chancellor is predicting interest rate rises in the future but at a “steady” pace.

All these factors are giving expats confidence in the future and capital raising seems to be the order of the day.

Lenders have responded to this activity and increased the number of mortgages available to the expat. Expats now have a good range of products to choose from with competitive rates on offer.

If you are thinking of re-mortgaging there are many pros and cons and all aspects need to be carefully considered before any decision is made. It is recommended that you seek professional advice as to whether this suits your needs both in the short and longer term.

Will rates increase?

I guess this is the “million dollar” question, if all the predictions for the long term are to be believed it is likely we will see rate increases later in the year. It is most likely these increases (if any) will be on a small scale as the Chancellor said in November last year.

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.

With the new tax changes that have come into force recently, expats are strongly advised to seek advice from an accountant on what can be done to maximise profitability.

Expat landlords could be looking at reduced profitability due to the tax relief on mortgage interest paid being changed. There is also a new stamp duty level that has been introduced so any expat contemplating a purchase needs to be fully informed.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to seek professional assistance as to the options available.

A local accountant we spoke to said, “We are getting more and more expats than ever before coming to us to seek advice on incorporation or more general tax advice”.

The way forward

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws that have come into force.

It is likely the accountant will recommend setting up a limited company to enable more tax advantages. Good news for expats is you can have a limited company registered in the UK whilst living overseas.

Secondly, completely review your current mortgage deal to make absolutely sure the current mortgage you have meets your needs now and in the longer term. It may very well be you currently have the correct mortgage, but it won’t do any harm to check it out.

It could be a very good time to consider re-mortgaging to release capital if required. By just completing these two simple tasks you could make huge savings over the coming years.

Need some mortgage advice?

If you wish to review your current mortgage please do contact one of our qualitied independent advisers and we will be pleased to help.

Britons living abroad, either temporarily or permanently, will need to obtain a mortgage from a lender that has chosen to lend to expats.

Typically, expats are looking to invest in buy-to-let property whilst living overseas, perhaps to provide an income in retirement or even to live in upon their return.

Whilst fluctuating exchange rates can, at times, provide a good opportunity for investors, it is also true to say that many expats earn better salaries abroad than they would do here in the UK. A lower cost of living means they have more disposable income and want to invest in UK property.

Aside from investors enquiries from individuals looking to buy properties for their families to live in – frequently where children are involved and the preference is for them to be schooled in the UK.

Selecting a mortgage to suit your needs

Securing an expat mortgage doesn’t have to be difficult, it is always recommended to get expert professional help. Using a specialist expat broker will without doubt give you the edge as they will be experienced in this type of mortgage process.

UK property prices increasing

According to the latest figures house prices are on the rise again, September and October saw good growth although not like years gone by but still very encouraging.

It is expected that house price increases will level out over the next year with a steady but reliable growth rate, again spelling good news all round.

So, at present the outlook for 2022 is very positive indeed, the signs are this will continue for the foreseeable future.

Can we help?

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