The number of expats buying a home in the UK with a mortgage has bounced back to the levels seen before the coronavirus hit the world.

Totals of approved expat mortgages for house purchases in May reached the highest level since January earlier this year.

The number of loans in the pipeline for expat homeowners re-mortgaging to a new deal also increased significantly. The current trend compared with the previous months is on an upward spiral and looks like continuing. This is more evidence that the UK housing market is going to remain stable even with all the uncertainty the virus has brought to the market.

Why is this happening?

The mortgage figures support anecdotal evidence from estate agents that following a brief dip in confidence after the virus gripped, expat and UK buyers are once again returning to the housing market.

But despite the increase, mortgages for expats buying a house are still 4% lower than they were in October last year.

Who does it affect?

The fact that buyers appear to be returning to the market is obviously good news for people trying to sell a property. The return in confidence may also encourage more vendors to put their homes up for sale, increasing the choice available to house hunters.

But the flip side of the situation is that buyers are also likely to face increased competition for properties from other buyers, which is likely to force house prices higher.

Can we help?

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

As an expat whatever reasons you may have for considering purchasing a house or flat in the UK, the good news is that there are lenders who are more than willing to offer expats a mortgage. Many providers don’t even advertise the fact.

Certain parts of the country are stagnating in terms of increasing but overall the UK market is as vibrant as ever. There is still a lack of housing which makes the buy-to-let market very attractive to expats who want a foothold in the UK and achieve a return on their capital. If you look at the interest rates on offer at the major banks it’s little wonder why expats don’t see savings as a way forward.

Brexit has not deterred expats from buying in the UK, in fact since the vote activity has increase by 13%. After the referendum the industry feared expats would hold back purchasing but that has not been the case.

The expat mortgage market is very complex, and you should seek professional advice as to what product best meets your needs. We have a select number of companies offering very favourable rates which are tailored to suit most needs, including buy to let.

Items you will need to apply

• Deposit available
• Certified proof of address
• Certified ID (Passport)
• Bank statements (Normally 6 months)
• Wage slips (Normally 6 months)
• Certified accounts if self-employed.

These requirements vary from lender to lender and the above is just to give you a guide to help speed up the process. Contact us for any assistance you may require.

Can we assist you?

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

House price growth reached its highest level for 18 months at 2.3% for the year to February, the latest index from Nationwide Building Society shows.

Average UK house prices also climbed by 0.3% month on month to reach £216, 092.

Nationwide chief economist Robert Gardner says: “While overall economic growth ground to a halt in the final three months of 2019, labour market conditions remained buoyant and borrowing costs low.

“The decisive election outcome may have provided a boost to buyer sentiment.

“Recent data releases indicate that the housing market has gathered momentum in recent months and the latest house price figures are in line with that trend. “The number of residential property transactions and mortgages approved for house purchase increased around the turn of the year and surveyors have reported an increase in new buyer enquiries.”

Looking ahead, economic developments will remain the key driver of housing market trends and house prices Gardner believes. He adds: “Business surveys suggest that activity recovered in the New Year, but there are still significant uncertainties that threaten to exert a drag on the economy in the coming quarters.”

“The global economic backdrop remains challenging, with the coronavirus outbreak expected to weigh on global activity in the coming quarters. Investment is likely to remain subdued until the UK’s future global trading relationships become clearer, which is unlikely until early next year.

“Overall, we expect the UK economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat in 2020 as a whole.”

The property market is feeling significantly more upbeat now that Brexit uncertainty has been lifted. We’re by no means out of the woods yet, as trade negotiations with the EU could easily turn sour and hit sentiment.

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

The property portal found that searches for UK property by overseas buyers have grown steadily over the last 12 months. They now account for 6.6% of all activity on the portal in the first three months of this year, compared to just 3.6% three years ago.

It said some investors are keen to capitalise on softening prices and a weak pound and are looking for discounts.

More expats choosing broker assistance for mortgages

The number of expat mortgages coming through brokers has risen steeply over the last 2 years, this figure now stands at 71% from 64% last year.

There has been a steady increase in mortgages sold by intermediaries to expat buyers and re-mortgagers as the market remains very buoyant indeed.

Independent broker benefits

• Full range of mortgage choices
• Industry qualified advisers
• UK based for easy communication
• Fully automated service
• Faster completion

Assistance required

If you would like help with your new or re-mortgage, please make contact and one of our advisers will be happy to help.

The Bank of England has refused to rule out cutting interest rates to below zero to boost the economy, but the move would penalise savers while rewarding homeowners.

The Bank’s governor, Andrew Bailey, has confirmed that negative interest rates are under “active review” after being questioned by MPs on Wednesday. Speaking at a hearing with the Treasury Select committee he told MPs that the Bank was looking at how effectively other central banks have used negative interest rates. He said “We do not rule things out as a matter of principle. That would be a foolish thing to do. But can I then follow that up by saying that doesn’t mean that we rule things in.”

Policymakers are considering negative interest rates after official figures showed that inflation had fallen to a four-year low of 0.8% in April – well below the Bank’s 2% target. The Bank has already cut the base rate to a record low of 0.1% to help support the economy amid concerns about the coronavirus pandemic. Lower interest rates can be used to help boost the economy as they make it cheaper for households and businesses to borrow money.

Japan’s central bank and the European Central Bank have both already adopted negative interest rates.

How do negative interest rates work?

If a country’s central bank sets its base rate below zero, high street banks must pay to deposit cash with it.

It is an extreme measure designed to encourage banks to lend more money to businesses and consumers in order to stimulate the economy.

For example, if the interest rate goes below zero it will encourage high street banks to offer cheaper loan rates to the public.

How could negative interest rates affect savings?

For savers negative interest rates are huge problem as they will see their cash eroded. This is because they are will be charged by banks to look after their cash. If the bank cuts the base rate below 0% this means further woe for savers who have already seen rates plummet this year.

The situation for savers is desperate and things just continue to get worse. If anyone does offer negative savings rates it would be the big banks, but I do not see it happening. Savers faced with having to pay to keep their money with a provider will find other things to do with it.