UK house prices rose by 1.7% in September, equating to an increase of £4,400 to the value of the average property, according to the latest Halifax House Price Index.

This means that UK house prices are now at a record high of £267,500.

This month-on-month rise is the strongest increase since February 2007 and ups year-on-year house price inflation up to 7.4%.

This also reversed the recent three-month downward trend in annual growth, which had peaked at an annual rate of 9.6% in May.

Wales continued to record the strongest house price inflation of any UK region or nation, with annual growth of 11.5% in September (average house price of £194,286).

Scotland also continues to outperform the UK national average, with growth of 8.3% (average house price of £188,525).

The Southwest remained the strongest performing region in England, with annual house price growth of 9.7% (average house price of £276,226).

The Northwest saw the next biggest increase, with house prices up by 9% year-on-year (average house price of £201,927), marginally ahead of Yorkshire and Humber at 8.9% (average house price of £186,815).

The weakest performing regions in terms of annual house price inflation are all to be found in the South and East of England, though these are also the areas with the highest average house prices.

Eastern England has seen annual growth of 7.2% (average house price of £310,664) while in the Southeast it is 7% (average house price of £360,795).

Greater London remains the outlier, with annual growth of just 1% (average house price of £510,515) and was again the only region or nation to record a fall in house prices over the latest rolling three-monthly period (0.1%).

Eight in 10 expat borrowers searching for mortgages in August were looking at fixed-rate deals, according to new analysis.

Fixed-rate mortgages are, as the name suggests, deals in which the interest rate remains the same for the term of the deal. Borrowers can choose deals in which they fix their rate for two, five-years or even 10 years.

While 80.1% were searching for the availability of fixed-rate deals, just under 20% were looking for variable rates – which offer interest rates based on external factors, such as the Bank of England base rate.

Currently the Bank of England has set rates at a low of 0.1% but there are some fears this could be increased, particularly as inflation is currently high.

Moneyfacts said in these times of economic uncertainty, it would seem the majority of borrowers had decided it would be easier to budget by protecting themselves from future interest rate volatility in the shelter of a fixed deal.

The data demonstrated a vast majority of potential new mortgage holders may be more risk-averse in the current economic climate.

Nearly 87% of the deals in the ‘fixed rate’ mortgage market were two or five-year products. Meanwhile, a third of borrowers were looking for a two-year deal whilst just over a quarter were searching for a five-year deal.

Longer term financial stability may also be in the forefront of consumers’ minds as the economy moves forwards.

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.

Scenario

I want to get a residential mortgage and have a deposit of about £75,000. I am self-employed, a UK resident and earn – and pay tax on – all of my earnings in the UK.

However, I am currently in Asia and am mostly paid by US-based organisations.

Is there any hope for me?

Answer

It is perfectly possible for you to get a mortgage while working abroad.

You just need to use a mortgage adviser who is familiar with what are called expat mortgages. These are mortgages for UK nationals who, like you, are working abroad but want to buy property in the UK, whether it’s on a residential or buy-to-let basis.

UK expats do find it harder to get a mortgage than Britons on the mainland. Harder, yes, but not impossible, especially when you use a specialist expat broker who knows which lenders are likely to lend to you and which will do so on the best terms for your personal circumstances.

A specialist should be able to help with interest-only mortgages, financing for the self-employed, buy to let, unusually constructed properties and unusual mortgage terms.

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.

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

Why independent?

Very simple you will have a much bigger choice of deals as an independent is not tied to any one company.

2021 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. This coupled with record low interest rates is indeed good news for the expat borrower.

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates has receded slightly.

All this positive news is giving the borrower confidence in the longer term, what happens after the Brexit negotiations are complete remains to be seen.

Expat mortgages are now easier and quicker to complete

The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 2 years.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months. A straightforward re-mortgage is now on average completing in less the 6 weeks which is significantly quicker than this time last year.

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.

If you wish to buy a property in the UK and live abroad you need an expat mortgage.

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.

Value for money

The UK property market still offers really good 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 will not continue long into the future. The only unknown factor is what will happen after Brexit has concluded and how any deal will affect the housing market.

Sound investment?

As years gone by the UK offers long term profitability and there really is no reasons why this should not continue for many more to come.

Mortgage advice?

If you need assistance with a mortgage then call our expert independent advisers who are waiting to help.