Overseas buyers and expats are sizing up the UK property market for potential bargains, taking advantage of the weak pound and the political uncertainty over Brexit, according to the latest figures released

The property portal found that searches for UK property by overseas buyers have grown steadily this year. They now account for 6.2% of all activity on the portal in the first three months of this year, compared to just 3.6% three years ago, an increase of 72%.

It said some investors are keen to capitalise on softening prices and a weak pound and are looking for discounts. This could fuel demand for UK property, alongside expats planning a return to the UK amid uncertainty.

Popular areas

London is in strong demand as the third most sought-after location, but the UK’s regional cities could benefit the most from interest from overseas buyers, with Glasgow and Birmingham the most popular search locations, followed by Manchester and Leicester.

Who is looking?

US house hunters are watching the market most closely, accounting for nearly 50,000 searches in the third quarter of this year, as shown by the list below of the top 3 countries where buyers are searching from:

1. USA
2. Spain
3. Ireland

Owning property in the UK is a goal of many overseas property investors including expats, it’s clear a rise in the proportion of searches for UK property which are taking place overseas since June 2018.

Can we assist you?

If you are looking for a new or re-mortgage do get in contact and one of our qualified advisers will be happy to help.

Since the end of last year the expat mortgage market has seen much more activity in both new and re-mortgage applications.

The UK property market continues on an upward spiral albeit slower than years gone by and still offers potential longer-term growth and security.

Expats are always keen to secure property in the UK and this year is no exception as applications for new mortgages are at an all-time high. Most experts believe these high activity levels will remain until the Brexit deal is finalised, with all the uncertainty expats want a UK foothold.

Confidence in the UK market has grown again since the turn of the year due to interest rates still being held after the threat of increases.

What does the future hold in store?

This is a very difficult market to predict in the long term, but if the past is anything to go by then UK property will hold its own and increase in value. Whatever happens with the Brexit deal property values are more than likely to remain strong. There are several factors that control prices, the main ones are listed below:

• Supply and demand currently supply only meets 38% of the demand.
• Mortgage interest rates are low and affordable.

So looking at the key factors the housing market looks in good shape for the future. Of course situations can change very quickly, not to mention Brexit, but on the whole the UK property market looks to be in a very healthy state especially if the supply does not increase.

Mortgage help?

Should you require any assistance with your new or re-mortgage please do call one of our fully qualified independent consultants and we will be happy to assist.

Expats looking for a mortgage or re-mortgage on a property in the UK now have a wider choice of loans than years gone by, so it makes sense to select the best one to suit your needs.

About five million UK nationals live overseas, and many are keen to hold on to a property in the UK, or to invest in a buy-to-let. As for a buy-to-let mortgage options are quite restricted – and in most cases you will need to get a specialist landlord mortgage.

It is possible to secure a standard residential home loan as an expat, but it is tricky to arrange, lenders will want to see evidence that close family are living in the house. Since most expats work abroad and cannot live in two places, for the majority, a buy-to-let is the more appropriate solution.

You will typically need to seek out a specialist lender and this is where the expat broker can assist you in making the correct choice and in turn save you time and money.

It can be a difficult process to secure a mortgage when clients are overseas, especially with the time difference and tighter lending criteria.

Another factor is the European Mortgage Credit Directive, introduced in 2016, which means individuals paid in a foreign currency now come under closer scrutiny when their loan applications are assessed. The underwriting process needs to take account of possible exchange-rate fluctuations, as well as looking at a borrower’s overall financial position.

What a broker will do for you?

The broker will take control of the mortgage process, therefore relieving you of the stress and paperwork. They will be able to deal with the mortgage company supplying the loan and answer any queries they may have, saving you time and money.

Help required?

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

 

It seems that expat homeowners have taken our frequent warnings about upcoming mortgage rate rises to heart, as August & September saw a record number of re-mortgages completed. This month is the highest number of re-mortgages since October 2012. Septembers figure also marks an increase of 21.3% year-on-year and an impressive monthly increase of 53%.

This increase is also partly due to a number of fixed rate mortgages coming to an end while borrowers locked into attractive deals amid expectations of further interest rate rises a few years ago. Given that standard variable rates have been moving upwards, it’s hardly surprising that expat borrowers coming to the end of a fixed rate deal will look to re-mortgage rather than see their monthly repayments go up considerably. But it’s not only re-mortgagors that were active earlier this year.

Expat first timers

The number of new expat first-time buyers also increased in the second quarter which is somewhat surprising given the Coronavirus situation. It would seem expats want to get a foot on the ladder in the UK so to speak perhaps as a backup.

Even with the general slow down in property prices the UK still represents good long term potential growth.

Mortgages

Expats currently have an excellent choice of new and re-mortgages available at advantageous rates, best advice is to act sooner rather than later as these rates are expected to increase.

Can we help?

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

 

Expats who own or contemplating owning a property in the UK will be pleased to know the average home now costs nearly a quarter of a million pounds with mortgage approvals hitting their highest level since the financial crisis erupted.

Rising activity in the housing market pushed the price of the average home up 7.3% in the last 12 months to £249,870, according to the Halifax index for September.

Further evidence of the lockdown mini boom came as expat lenders recorded the highest level of approvals since October 2008, adding that they had also received more expat mortgage applications from both first-time buyers and re-mortgagers than any time since 2008.

Experts predict the uptick to be short lived however, claiming demand is being driven by a combination of pent-up demand released after the lockdown market freeze, the stamp duty cut.

According to this official data, average house prices stood at £255,000 in England, £170,000 in Wales, £155,000 in Scotland and £141,000 in Norther Ireland.

Most forecast the market to cool off in coming months as demand wanes and the economic realities of the pandemic start to become more apparent.

With the final stages of Brexit looming and the uncertainties ahead wise expats are buying now rather than the wait and see approach.

Is it a good time to buy in the UK?

The very quick and simple answer is yes.

The affordable properties that are available to purchase seem to be diminishing on an daily basis, which without doubt will mean higher prices to pay in the future. The good thing is there are still some particularly good mortgage deals around for expats so it could be the right time to start your search.

Need assistance?

If you require help with your current or new mortgage please call one of our experienced advisers who will be happy to assist.