Recent comments from the Bank of England suggest that UK base rates could be heading lower in the short term. This seems to be based on the likelihood of a no-deal Brexit which is currently the central policy of the new Prime Minister Boris Johnson. While we have seen this type of speculation in the past, money markets are now indicating this is a very real possibility and one which expat homeowners may need to address. So, when is the right time to refinance your mortgage?

To say that we are in uncharted waters in the UK is an understatement to say the least. The 2008 economic downfall was like no other seen in living memory. The slow economic recovery could be described as “false” bearing in mind the amount of quantitative easing and historically low interest rates propping up markets. So, if we now turn our attention to the potential to refinance mortgages, when is the right time?

Today is the only certainty

If we take a step back and look at the situation from a distance, interest rates today are the only ones we can quote with any real certainty. Yes, the Bank of England has suggested falling the short term to cushion the blow of a no-deal Brexit. However, if you wind back just a few months there was speculation that UK base rates could be headed higher, so can we believe with any certainty what Mark Carney is saying?

As we mentioned above, the only definite interest rate is the one you see before you today. So, if you are considering refinancing your mortgage it is probably worth approaching a mortgage broker to see the best deals on offer. You would obviously need to take into account any additional charges, early redemption penalties, locked in interest rates and forecasts for the future.

Can we help?

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

The Ipswich Building Society’s expat range is now available to applicants paid in foreign currencies, as those paid in pound sterling (GBP).

The new range consists of the following products and is available to direct applicants, intermediaries based in the Society’s heartland area, and members of selected networks and clubs:

• 2-year fixed rate at 3.10% until 30 September 2021 (5.4% APRC)

• 2-year discount rate at the Society’s Standard Variable Rate (currently 5.74%) minus 2.94%, giving a current pay rate of 2.80% for two years from the completion date (5.5% APRC)

• 5-year fixed rate at 3.34% until 30 September 2024 (4.9% APRC)

All products are available up to 80% loan to value (LTV) and have an application fee of £199, a completion fee of £800, a CHAPS fee of £35, and a tiered valuation fee based on property value applies. During the product period, the Society offers fee-free overpayments up to 50% of the original loan amount.

For overpayments in excess of 50% of the original loan amount, or early redemption, an Early Repayment Charge (ERC) applies. For overpayments this charge is calculated on the overpayment amount that exceeds the 50% allowance, and for early redemption is calculated on the original loan amount.

Loans are available from £75,000 to £500,000 with a maximum term of 40 years. Applicants must be employed by a recognised multinational firm and have a minimum income of £40,000 GBP or equivalent paid in any of the following 10 currencies: euro, Swiss franc, Norwegian krone, US dollar, Canadian dollar, Singapore dollar, Hong Kong dollar, UAE dirham, Kuwaiti dinar, Qatari riyal.

Affordability assessments will take into consideration employed applicants as well as retired borrowers, with 100% of pension and 75% of investment incomes used when calculating affordability.

Can we help?

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

Mortgage rates have plummeted since January, but would-be expat borrowers and re-mortgagers are being urged to strike now to take advantage of the competitive market.

Whether you are borrowing using a two-year deal, a five-year fix or even locking into a long-term 10-year fixed rate, prices are more attractive now than they were in January.

Indeed, the data analysts, revealed those borrowing money for their home using an average two-year fixed-rate mortgage this month will have paid an average rate of 4.2% compared to the 4.45% they would have been charged in January.

Five-year fixes, meanwhile, have fallen from a typical 4.33% in January to 4.1% today.

In fact, it’s much better to be a borrower than a saver as whilst prices are falling on mortgages, when it comes to savings the interest rates on offer have fallen since January too.

Borrowers urged to fix soon

The message from experts, for expats who might be waiting for prices to go down further, is to consider fixing their mortgage soon to take advantage of the deals currently on offer.

Interest rates are currently low but how long this trend will continue with Brexit looming is anyone’s guess.

Expat first-time buyers should keep a close eye on their finances and be mindful that with house prices on the rise in the UK, their dream of getting onto the property ladder may be further away than first thought. While interest rates are a convenient measure to compare deals, it is important that borrowers consider a mortgage based on the overall true cost, particularly to save on any upfront fees.

Seeking out independent financial advice is a good idea to navigate the mortgage minefield.

Can we help?

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

SThousands of expat borrowers could be missing out on a better mortgage deal by not speaking to an independent adviser, research has found.

The survey of over 1,000 expats revealed that 31% who went direct to a lender didn’t understand how a independent mortgage adviser could help with their search.

The findings also showed that 69% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years, while 74% stayed put because they felt they had a ‘good deal’.

Without seeking independent mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser.

The analysis showed that the mortgage industry still needs to demonstrate the value of independent mortgage advice to expat borrowers – just 30% of those who went direct to the lender said that they would likely speak to a mortgage adviser next time.

Meanwhile, 60% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower, and just over a third (34%) thought a independent mortgage adviser was there to support the lender.

What’s more, borrowers going through a mortgage adviser have access to far more mortgages than those going direct to the lender.

Expats who benefitted from a mortgage adviser searching the market for the best mortgage deal were more likely to have switched in the last five years (29%), compared to just one in five (19%) of those who went direct.

Expats who used a mortgage adviser were also in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Can we help?

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

OIf we put Brexit to one side for the moment, there are many expats originally from the UK looking to acquire property in their former homeland. The value of sterling has fallen since the 2016 referendum on the EU and even though it has made a short-term recovery, the real spending power of the euro and dollar has increased significantly. However, how hard is it to obtain an expat mortgage?

Criteria

There are a number of items to take into consideration when looking at expat mortgages. These include

• Proof of income
• Using assets as security 
• Credit history
• Identification and address

Proof of income

If you are employed by an international company, with a footprint in the UK, this is probably the Holy Grail for lenders and borrowers. You will likely be paid in sterling, have a good track record and be able to prove your income. The situation can be different if you have your own company, you are self-employed, or you are paid in a foreign currency.

Credit history

In many ways creating your own credit history in the UK is something you can begin well before you make an expat mortgage application. For many expats, in the far-flung countries of the world, there may not be a credit history system and even if there is, it may not be as accurate as its UK counterpart

Expat market is expanding daily

Immigration was a major issue during the EU referendum and while much focus was placed upon European citizens working in the UK, there are many UK expats living the length and breadth of the globe.

 Can we help?

As expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.