2019 saw the expat re-mortgaging market increase dramatically, often because the mortgage term had come to an end.  The most common reason was switching to a fixed rate deal, with such good rates on offer expats see this as good alternative.

This type of mortgage gives clients certainty about what future payments will be for the period of the fixed term. With predicted unsettled times ahead due to the Brexit talks this type of mortgage could be a wise move indeed. Expats should take time to review their current mortgage deal as many experts are predicting interest rate increases in the near future.

With property prices still increasing expats are also re-mortgaging to release equity that has built up over the years.

Is there a good time to re-mortgage?

Rates are very low at this moment in time and there is a lot of debate to when they will rise again. A lot of industry experts anticipate that they will do mid to late summer this year.

If this is to be the case now could be a very good time to consider a re-mortgage. Brexit is without doubt driving these fears but if your mortgage term has come or is coming to an end do review it as you could be saving yourself a great deal of money.

Mortgages offer much lower interest rates than store and credit cards, so you might wish to take the opportunity of consolidating your debts by using the equity built up. You could well end up paying a lot less each month than you were before by taking this course of action.

As there are many pros and cons to re-mortgaging, all aspects need to be carefully considered and advice should be sought from a professional independent mortgage adviser.

Can we help?

If you require a new or re-mortgage, please do make contact and one of our independent advisers will be happy to assist.

Expat mortgage rates have been falling consistently for the past two years or so. Both fixed and tacker interest rates are now at the lowest they have been for a good many years.

The question is for how long?

Expats should be taking advantage of these low rates on offer. It is no secret that interest rates will rise again in the future the question is when. Wise expats who currently have a mortgage on a standard rate should review it sooner rather than later as there are some good fixed deals available.

Many mortgage providers are fighting for new business and this has resulted in the lowest ever fixed rate deals being offered.

If your current deal is coming to an end soon it is strongly recommended to consider a longer-term fixed rate deal.

Figures are showing that fixed rate deals have fallen on average over the last 24 months by 0.5% this is the biggest reduction recorded in recent years.

So, what does this mean for the expat borrower?

Well it means right now is a very good time for new expat investors and existing ones.

New investors have an excellent choice of very competitive products to choose from, both fixed and tracker. 

Existing borrowers should without doubt be very prudent and review their existing contracts on a regular basis. By keeping pace with the current market existing borrows can save thousands of pounds on the remaining term of their mortgage.

Need assistance?

Our independent advisers are confident dealing with all types of expat mortgages, they have vast experience in this area. Please do contact us to discuss your requirements and we will be happy to help.

Property commentators have welcomed the landslide Conservative election victory for bringing the UK closer to ending the Brexit uncertainty that has stifled transactions for so long.

Sterling surged against the dollar and the euro as the outcome of the election became clear and the FTSE 100 began to climb when the market opened.

In the Conservative Party manifesto, Prime Minister Boris Johnson had promised to push ahead with the target of building 300,000 new homes a year by the mid-2020s, reforming leasehold and abolishing Section 21 “no-fault” evictions. Johnson also pledged to encourage a new market in long-term fixed rate mortgages, continue supporting Right to Buy and look for new ways to support home buyers when the Help to Buy scheme comes to an end in 2023.

The result will, for the time being, end the uncertainty of a no-deal Brexit and pave the way for the release of some of the pent-up demand that has built in property markets in recent years. The extent to which this translates into transaction activity in the short-term will depend on the size of the pricing expectation gap between buyers and sellers. Supply is likely to rise as political uncertainty recedes and private and public spending stimulate the UK economy. 

It is good to have certainty and a party with a clear mandate

Although there is talk of a potential extra 3% stamp duty for foreign buyers as detailed in the Conservative manifesto, until that time we will see the property market return to some sort of normality with the uncertainty of Brexit having been mitigated.

Help required

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

Data released today for October revealed expat re-mortgages were up by 8% while refinancing with additional borrowing increased by 5.9%.

The spike in expat re-mortgaging has been attributed the uncertainty of Brexit.

Brexit

It is not surprising that re-mortgaging numbers have slightly increased, pressing home the message that expats simply want or have stability in uncertain market conditions generated by the Election and Brexit.

Many of these borrowers have released further cash in order to carry out home improvements or extensions, enabling them to gain extra space.

Competition

Others thought the rise was also attributable to strong competition between lenders who were keen to attract business. Re-mortgaging is also consistent with borrowers opting for cheap fixed rates in the main.

Lenders are keen to lend and hardly a day goes by without another cutting its rates to attract business.

Strong expat mortgage figures are mainly down to the re-mortgage market, with competition between lenders aiming to attract as much business as possible underpinning performance.

Expat buy-to-let

The data also provided further evidence of the challenges facing the buy-to-let market, with this area of lending being the only sector in which figures fell during October.

UK Finance revealed 3.5% fewer buy-to-let home purchases took place during October compared to the same month in 2018 and re-mortgage rates remained at the same level.

Contact us

If you would like to review your current mortgage please make contact and one of our independent advisers will be happy to help.

Re-mortgaging a property is something that many still talk about in hushed tones, associating it with being hard up, struggling to make ends meet.

However, while this is sometimes the case, re-mortgaging is often a smart move for expat borrowers to save on monthly repayments. In fact The Financial Conduct Authority’s Mortgage Market Study found that roughly 29,000 expats are currently overspending on their mortgages and could save £1,000 a year by switching. So why are we still talking about re-mortgaging in embarrassed whispered voices?

Research revealed that re-mortgaging is a widely misunderstood term. In the survey, three in five people admitted to not being sure of what re-mortgaging actually meant.

Almost half of the expats surveyed associated re-mortgaging with negative connotations. While one in five admitted that they’d be embarrassed to admit they’d re-mortgaged their home.

This was linked to almost a quarter of those surveyed believing you would only re-mortgage to borrow extra funds. A further 8% thought re-mortgaging a property meant you were in a ‘desperate’ situation.

To clear things up, re-mortgaging happens when mortgage holders come to the end of a fixed term. If they wish to re-mortgage, they can then chose a product transfer – when you stay with the same lender but transfer to a new fixed-rate deal or you move to a fixed-rate deal with a new lender.

Help with your expat mortgage?

Please do make contact and one of our expert independent advisers will be pleased to assist.