expat mortgages favicon

Expat mortgage approvals hitting new highs

/0 Comments/in /by

This year has been the year to break numerous records and now we have seen expat mortgage approvals reach new heights.

Records show expat mortgage approvals are 36.7% higher than this time last year. It is no surprise to us as enquiries have been on the rise since the Brexit vote was announced. Property in the UK is still without any doubt a very good long-term investment unlike property in most of the Euro zone.

Buy-to-let mortgage approvals are showing the greatest increase and account for 41% of the total expat business. Buy-to-let business this year has been very buoyant as more expats look to secure property and at the same time earn extra income.

With a potential interest rate rise on the horizon re-mortgages are now becoming very active as clients look to secure a longer-term fixed deal.

If you are an expat and have not reviewed your current mortgage it would seem a very good time to do so as this could save you a great deal of money on your monthly budget.

Buy to let expat mortgages

UK and expat landlords are reaping rewards from lower mortgage charges and longer fixed rate deals. If you have an existing expat buy-to-let mortgage it may be a very good time to review its status.

We are hearing of a potential rate rise which could seriously hit profitability of your rental income. Remember it is not always best advice to change your mortgage mid-term so seek help from a professional adviser to see if this could be best advice for you.

Need some assistance?

If we can help with your new mortgage please call one of our fully experienced advisers we are here to help!

expat mortgages favicon

Expats should review and save thousands

/0 Comments/in /by

There is very little doubt in the expat mortgage market 2018 is the year of the expat re-mortgage. You only need look at the rates being offered by lenders – particularly in the lower Loan To Value (LTV) bands. The rates currently on offer are not going to stay this low for much longer so if you are an expat and have a current variable rate mortgage review it sooner rather than later.

Research confirms that over 50% of all expat borrowers who move to their lender’s standard variable rate after their initial deal terminates don’t re-mortgage or product transfer for 3-5 years.  Also the report shows a quarter of re-mortgagors said they find the whole re-mortgage process difficult, with 42% saying they didn’t have time to shop around.

The “shopping around” mentality is clearly far more embedded in the UK consumer than ever before; however this doesn’t always translate to mortgage borrowers, even when the savings that can be achieved are substantial.

Expats need to get the message that re-mortgaging is where significant savings can be made – especially with rates as they are now. Rates are unlikely to remain this low for much longer so acting now could save thousand in the future. If you are an expat on a standard rate mortgage would you like to save upwards of £2000 PER YEAR? These savings are of course dependent on the size of mortgage you have but surely it’s worth checking.

Warning – A re-mortgage is not always suitable for everybody as your existing deal may well have penalties attached to change within the discounted period. It is always recommended to seek professional help as to what is best advice to suit your needs.

Can we help?

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

expat mortgages favicon

UK property growth slowing

/0 Comments/in /by

Experts believe UK property values will rise between 2.5% & 4.5% across the UK next year according to figures released by one of the major high street mortgage lenders. This prediction does come with a “health warning” due to the Brexit uncertainty, but facts are the UK property market has seen off far more challenges than this in the past.

If these figures are achieved it follows the trend of this year, the report also states increases in values could be stifled by the possibility of a Brexit fallout early in 2019. Another factor that could possibly slow growth down is first time buyers being unable to get onto the property ladder. First-time buyers still find it difficult to raise the necessary deposits levels to meet the mortgage lenders requirements.

If you are an expat with property in the UK compare this annual growth to what could be achieve from an investment in any high street bank, property still looks a very good bet in the long term.

The report states they expect growth to slow more in the London area than elsewhere due to the initial high costs. It is likely properties in the North and East of the country will see the largest growth due to their current affordability levels. Read more

Expats, when did you last review your mortgage?

/0 Comments/in /by

A former Bank of England Monetary Policy Committee member has predicted that interest rates could rise significantly in the next few years. This forecast is based on the lack of progression of the Brexit negotiations and what effect that could have on interest rates.

Inflation has now caught up with wage growth causing a sharp consumer slowdown and the weak pound has also squeezed consumers and the expectation is that households will adjust their spending downwards.

More and more expats are looking for ways to reduce their monthly outgoings. One of the biggest expenses most people have every month is their mortgage payment.  Keeping this in mind it would be a wise move to review your current mortgage so as to establish if it is still the best deal for you.

This will not be the case for everybody, your current deal may well be very good, but it is most certainly worth checking.

With all the uncertainty the Brexit situation is having on the UK currently a prudent move may be to fix a term for your current mortgage, this would take out all the uncertainty over that period.

It is highly recommended to seek professional independent advice as to what new deal could suit your current situation.

Reasons to re-mortgage

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • Transfer to a fixed medium/long term deal

Help required?

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

Expats are well in profit

/0 Comments/in /by

Despite the uncertainty surrounding Brexit negotiations the “dire shortage” of homes is still pushing prices upwards, according to a recent surveyors report. Brexit negotiations continue and all the news coming out at present is hardly of a positive nature, but still, throughout all this, the UK property market is holding firm.

Recent reports show expats are returning to the UK residential market in large numbers, but the lack of supply means there are not enough quality properties available.

Property values continue to rise albeit at a slower rate than years gone by, with 29% more surveyors seeing growth in July compared to 18% the previous month.

Interest from prospective expat homebuyers increased for the sixth consecutive month.

The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.

Surveyors are predicting a rise in prices over the next 12 months, with price expectations now positive in the majority of areas in the UK. These results show that confidence within the housing market continued to sustain momentum in the last few months.

With interest rates still very low, many expat buyers are realising that now is an affordable time to borrow. As a result, the market remains resilient and we are seeing a growing number of mortgage approvals for first-time expat buyers in particular.

If you are an expat and currently own a property in the UK with a mortgage now would be a very good time to review your current deal. Interest rates are currently low, but it has been muted this could change in the near future.

Mortgage help?

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

Expat mortgage applications increasing daily

/0 Comments/in /by

Rising levels of mortgage enquiries, applications and completions show that a significant number of expat first-time buyers are still both willing and able to get a foot on the UK property ladder.

The industry feels this surge of interest is partly down to the Brexit situation, expats are very keen to acquire property in the UK due to the ongoing uncertainty. The other main factor is the poor returns received when investing in property in other European countries.

UK property values remain stable which is a testimony to the long-term potential growth this market offers. Even with all the uncertainty in Europe and the UK, the market remains resilient and profitable, which is why expats see this area as good financial security.

It seems that expat first-time buyers are the ones having the most luck. Over two-thirds of mortgage applications by expat first-time buyers were successful in the first six months of 2018. The average number of expat enquiries has also risen dramatically this financial year as expats look to get a foothold on the UK property ladder.

Mortgages are not as easy to obtain as in the past but there are still good options open to the new investor and people wanting to re-mortgage.

It is strongly recommended using an independent broker as the application process can be somewhat stressful. An independent broker will have access to all products available and will advise accordingly.

Can we help?

If you are looking to invest in the UK please do contact us and one of our qualified advisers will be happy to assist.

 

/0 Comments/in /by

Expat mortgages now much quicker

The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 18 months.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months. A straightforward re-mortgage is now on average completing in less the 5 weeks which is significantly quicker than 18 months ago.

A survey of expats applying for a mortgage was taken recently and it clearly showed one of the most important factors in the mortgage process was the speed of advancement, a close second was ease of application.

Good news is the lenders have taken notice of the findings and have reacted well by speeding up the process considerably.

Expats are now using an independent broker more than ever before to secure their deals whether it be a new or re-mortgage. The survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

2018 has seen a large increase in approved mortgage applications compared to the same period last year. These increases show how restrictions are being eased by lenders as they compete for every single bit of business. This coupled with record low-interest rates is indeed good news for the expat borrower.

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates has receded slightly. All this positive news is giving the borrower confidence in the longer term, what happens after the Brexit negotiations are complete remains to be seen.

Like to know more?

If you require help with your new or re-mortgage please do contact one of our fully qualified advisers who will be happy to assist.

 

Expats still wanting buy-to-lets

/0 Comments/in /by

If there is one area of the mortgage market many expect to present a challenge then it is the expat buy-to-let, but its demise has been greatly exaggerated. This is a sector that has confounded many experts in terms of its continued strong performance.

It would seem expats find this area of investment still highly profitable, not only for the extra income it provides but the longer growth potential.

Yes, property prices in the UK may have stabilized of late but if you look at the history this is not unusual. Brexit undoubtably is having an effect on the property market and who knows what will happen, one thing is for sure property will always be in demand and that means good longer returns on an initial investment.

Another expat area we expect to remain strong is the first-time buyer market. Arguably, despite affordability issues, low rates mean there has not been a better time for expats to get on the housing ladder in the UK.

Traditionally the UK housing market always seems to outperform most of the other investment vehicles on offer in the UK. Investment returns from traditional savings accounts remain very poor and this is a major contributing factor to the property investment market.

There is a feeling within the industry it is only a matter of time before interest rates start to climb. This said if you are an expat considering buying property in the UK it may well be a very good time to start looking.  If you are an expat with a mortgage on a UK property this is a very good time to review it to make sure the deal you have best suits your needs.

Can we help?

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

Expat landlord or would like to be?

/0 Comments/in /by

With the new tax changes that have come into force recently, expats are strongly advised to seek advice from an accountant on what can be done to maximise profitability.

Expat landlords could be looking at reduced profitability due to the tax relief on mortgage interest paid being changed. There is also a new stamp duty level that has been introduced from April 2016 so any expat contemplating a purchase needs to be fully informed.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to seek professional assistance as to the options available.

A local accountant we spoke to said, “We are getting more and more expats than ever before coming to us to seek advice on incorporation or more general tax advice”.

The way forward

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws that have come into force. It is likely the accountant will recommend setting up a limited company to enable more tax advantages. Good news for expats is you can have a limited company registered in the UK whilst living overseas.

Secondly, completely review your current mortgage deal to make absolutely sure the current mortgage you have meets your needs now and in the longer term. It may very well be you currently have the correct mortgage, but it won’t do any harm to check it out.

It could be a very good time to consider re-mortgaging to release capital if required. By just completing these two simple tasks you could make huge savings over the coming years.

Need some mortgage advice?

If you wish to review your current mortgage please do contact one of our qualitied advisers and we will be pleased to help.

Expats remain positive

/0 Comments/in /by

If there is one area of the mortgage market many expect to present a challenge then it is the expat buy-to-let, but its demise has been greatly exaggerated. This year alone has seen more new expat buy-to-let deals complete than at any time in the last 4 years. This is a sector that has confounded many experts in terms of its continued strong performance.

Another expat area that has remained strong is the first-time buyer market.. Arguably, despite affordability issues, low rates mean there has not been a better time for expats to get on the housing ladder in the UK. Traditionally the UK housing market always seems to outperform most of the other investment vehicles on offer in the UK. Even with the Brexit negotiations experts are still saying the UK property market will continue to offer value in the longer term.

There is a feeling within the industry it is only a matter of time before interest rates start to climb. This said if you are an expat considering buying property in the UK it may well be a very good time to start looking.  If you are an expat with a mortgage on a UK property this is a very good time to review it to make sure the deal you have best suits your needs.

Mortgage choices

Expats have a selection of both new and re-mortgage products to choose from. Interest rates remain at present reasonable especially compared to a few years ago. Deals including tracker and fixed are readily available from a number of lenders.

Can we help?

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