EIf you are considering property as an investment in the UK but you live outside of the Country the exchange rate fluctuations are likely to have a significant impact on your decision. Future rates of exchange are likely to depend on the kind of exit deal that is negotiated, combined with the currency that you will be using to purchase a property.

It is also worth being aware that the UK Government has announced that it is considering introducing additional Stamp Duty for non-UK residents buying property in the UK, although this has not been defined nor has a date been set for when/if this could be implemented.

Mortgages

Stepping away from currency and exchange rate fluctuations, it is widely predicted that interest rates may rise at some point. That said, nobody really knows exactly what conditions would have to be met as a result of exiting the EU that would have a direct impact.

We know from experience, immediately after the vote to leave the EU, interest rates were reduced by 0.25%, but whether this would happen again in the event of no-deal, it is unclear.

What is always prudent in such periods of uncertainty is to review your current mortgages rates and consider switching to a fixed rate for a period that is suitable for you. Use a mortgage calculator to establish what would happen if rates rose/fell and then speak to an independent mortgage consultant to discuss whether it is worth re-mortgaging.

If you are already using a fixed rate mortgage, be aware that most UK banks will let you re-evaluate your fixed term without penalty if you are within three months of the fixed term coming to an end.

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.

EExpat mortgage business is very buoyant currently and in particular the re-mortgage area as expats look to released locked capital within their UK properties.

A recent report shows the average amount released currently stands at over £44,000 per case as of the end of January this year and the number of re-mortgages rose by 12.5% year to date.

There seems to be within the expat community a Brexit caution mode at present, expats are re-mortgaging to fix the deal to alleviate potential problems any Brexit decision could make.

The report shows December and January witnessed a very strong month for mortgage lending within the expat community as house buyers rushed through purchases. This high activity is attributed to the ongoing Brexit situation.

Our director of operations commented “It would seem expats have re-mortgaged their current UK property to raise funding for further purchases within the buy-to-let market”.

Over the coming week’s speculation about Brexit will continue to dominate the news and have an unsettling effect on the markets. However, this should not dissuade people from re-mortgaging if there is a financial benefit to the borrower.

There are some very good re-mortgage deals on offer currently with extremely good interest rates being available. If you are considering a re-mortgage it may well be prudent to explore what fixed deals are on offer as at some stage interest rates are likely to rise.

Can we help?

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

Gross mortgage borrowing in the expat sector is 22% higher overall than 12 months ago recent figures show. The number of mortgage applications for November and December combined also saw the highest numbers for the last 8 years.

The really good news for the borrower is that application approvals reached a record high in 2018 and look set to continue way into 2019.

Re-mortgaging numbers in particular have been rising month on month and continue to do so. Homeowners have recognised that interest rates are due to increase in 2019 and have taken advantage of the very good fixed rate deals that are available now.

The Brexit uncertainty is adding to this situation as expats look for longer term security.

Re-mortgage

If you are one of the thousands of expats who have not re-mortgaged, and you are still on a standard deal now is the time to review your circumstances. If the predictions are correct interest rates likely to rise in the next month or two with further rises on the horizon.

Good news is there are still some very good fixed and discount deals on offer, but it’s likely they won’t be around for much longer.

Can we assist?

If you require some help with your current or new mortgage please do call one of our fully qualified advisers.

The financial incentive for expat mortgage borrowers reaching the end of their current fixed rate deal to re-mortgage to a new deal has soared to an 11-year high.

According to the latest Moneyfacts, borrowers could save more than £3,000 a year by opting for a new fixed rate mortgage rather than sitting on their existing lenders standard variable rate (SVR).

The main reason for this is that expat borrowers who took out a two-year fixed rate mortgage two years ago have been enjoying some of the lowest rates ever seen. Indeed, in January 2017, the average expat two-year fixed rate mortgage came with a rate of 3.85%.

Now, however, those borrowers who took advantage of these highly competitive mortgages two years previously will be moving onto an SVR unless they choose to re-mortgage elsewhere.

In terms of repayment amounts, the typical expat borrower with a £200,000 repayment mortgage over a term of 25 years could therefore expect to see their monthly payments rise by £300 a month – or £3600 a year – if they remain on their current lender’s SVR.

However, by choosing to re-mortgage to a new short-term fixed rate deal – the typical repayment would be £250 a month (or £3000 a year) cheaper than if they did not re-mortgage.

Want to check your deal out?

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

BThe Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75%.

The rate has stayed at this level since it was raised from 0.50% in early August last year.

The meeting minutes show that the committee believes that the softer growth seen both domestically and internationally is “likely to prove only temporary,” and that CPI inflation is expected to settle a “little above 2% in the medium term”. Currently it sits at 2.1%.

The minutes go on to say that if the economy were to develop as expected, monetary policy would be tightened “at a gradual pace and to a limited extent.”

In terms of the housing market, the MPC expects the UK House Price Index to be broadly flat in the first quarter of this year, in line with indicators provided by Nationwide and Rightmove. Furthermore, the committee expects housing investment to fall within the same time frame.

The decision to hold rates was widely expected by both the market and commentators, given the continued uncertainty around Brexit.

Although inflation remains slightly above the 2% level and real wage growth continues its current trend, the MPC looks to have remained cautious in its approach, wanting to wait until the outcome on Brexit is known before raising rates further.

Assuming a Brexit deal can be reached before 29 March, the MPC will now likely wait until after this point before hiking rates again.

This is good news for expats with mortgages, however, if you are an expat who has a mortgage on a variable rate it would be a good idea to review it as soon as possible.

Help required?

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