The reduction in buy-to-let mortgage tax relief may cause more people to emigrate abroad and invest in UK buy-to-let from overseas.

Those lenders not already operating in the expat marketplace will have to start thinking about tapping into it because of more people leaving the UK and becoming expats than ever before. With the Brexit situation, people are realizing there’s a big world out there and they can experience more cultures.

If you are already an expat there’s genuinely never been a better time to take out mortgage finance. The mortgage tax relief changes, phased in over four years, mean 75% of finance costs are deductible from rental income from 2017 to 2018. The year after it will be 50%, the year after that 25% and from 2020 none.

Expats can earn a certain amount in the UK before paying tax and property purchasing may not take them over that amount, meaning they wouldn’t be affected by these tax changes.

The expat current marketplace lenders are more cautious when lending, always looking at affordability and there’s more underwriting as well. This should not deter the long-term expat investor as the rewards can be very worthwhile. Using a UK based broker will without doubt help reduce the administration as they are fully experienced on what will be required.

The expat marketplace for lenders is as competitive as ever and new entrants are likely as Brexit presses on. Expats currently have an excellent choice of new or re-mortgage buy-to-let products.

Can we help?

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

Expat buyers and re-mortgagers are fixing their mortgage deals for longer as the threat of interest rate increases loom.

The number of applications received for 3-5-year fixes from first-time expats buyers has more than doubled year-on-year, with 51% of all expat first-time buyer applications being for longer term deals.

Re-mortgage deals are also being fixed for the longer term although 2 years fixes are still very popular. The overall trend of the expat seems to be to secure a decent rate for the foreseeable future. Tracker deals currently are generally not so popular, but this must be expected with interest rate increases promised.

More and more expat first-time buyers are getting their foot on the property ladder in the UK than ever before, this is likely to be prompted by the Brexit situation and the uncertainty it brings.

What is very surprising is the expat first-time buyer is putting down a larger deposit than ever before showing an increase of 20% in 2017 and this trend is carrying on into 2018.

Data shows that first-time expat homeowners are making very wise decisions about the type of home loan they choose, such as opting for longer terms, which reflects the sound advice brokers are likely giving to their clients.

Role of the UK broker

More expats are turning to a broker, perhaps because choosing a mortgage is one of the biggest challenges they will face whilst residing overseas. The growth in intermediary share of lending over the past five years has risen from 53% in 2012 to 77% in 2017, this clearly demonstrates the value borrowers place on the role of a broker.

Help required?

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

Mark Carney has put the country on notice – the cost of borrowing is going to rise more rapidly than the Bank of England indicated only three months ago.

Savings wise, this for some could be good news. Interest rates need to go up more quickly than expected because the Bank expects the economy to grow more strongly than expected this year.

Unemployment is at its lowest for 43 years and, finally, wages are starting to pick up – as one would expect when the jobless rate is so low. That’s the good news for the UK.

The market was putting the chances of an interest rate rise in May at 50/50 even before the Bank’s inflation report, but now sees the chance of a rate rise that month as more probable than that, while a rate rise in August – a month after Mr Carney celebrates his fifth anniversary of becoming governor – is seen as a done deal.

Even a rise from 0.5% to 0.75% will feed through into higher mortgage rates. Swap rates, which mortgage lenders use to price their fixed-rate home loans, have already been rising with, for example, the two-year rate more than doubling during the last 18 months.

So, expats whose fixed rate home loan is up for renewal before August should be looking right now to lock in the current rates. Likewise, expat mortgage borrowers on a variable rate deal might also want to think about moving to a fixed rate deal.

The UK has just gone through a period, lasting nearly nine years, during which interest rates were held at record low levels.

They were kept at those levels because the Bank of England’s policy-makers were more frightened about deflation than inflation.

Review your mortgage deal if:

• Fixed rate is ending shortly
• Your current mortgage is on a standard variable rate
• You wish to raise capital

Can we help?

If you would like some assistance please make contact and one of our advisers will be happy to help.

The last 12 months have seen a significant increase in expat approved mortgage applications against figures just issued for 2016. The increase shows how restrictions are being lifted as expat lenders compete for every single bit of business, this coupled with lower interest rates in real terms is indeed good news.

Lenders continue to hold down rates as the prospect of the Bank of England raising interest rates has fuelled fears of a rise. This is giving the borrower more confidence as the future looks bright even if small rises in interest rates are imminent.

Appropriate to re-mortgage?

Interest rates are most certainly in the borrower’s favor at present but there is always a lot of debate of how long these rates will last. All of this in mind it could be a very shrewd move to consider your own mortgage position. It is very common place for clients with a mortgage to just leave it as they are not aware of the savings that could be achieved with a re-mortgage.

There are many pros and cons to re-mortgaging all aspects need to be very carefully considered. It is not always best advice to re-mortgage to save money in the short term so please be sure to contact a professional adviser, they will give you an unbiased opinion of your situation.

If the time is right to change your current deal you might like to re-structure the borrowing you have in total. Mortgages offer much lower interest rates than store or credit cards, so equity in the property could be used to address this, again this is NOT always the best advice.

Like to know more?

Please feel free to contact one of our expert advisers for any assistance you may require. We look forward to being of assistance to you soon.

The UK housing market without doubt still offers remarkable value for money if you own a property or can afford to buy one. Anybody who owns a property in a good area of the UK over the last 10 years would have seen their investment grow substantially.

Traditionally the UK property market has always offered excellent value long term investment potential and there is no reason to believe this won’t continue well into the future.

At present with low inflation, strong wage growth, falling unemployment and very competitive mortgage deals on offer the housing market is likely to remain strong.

With expat mortgages being offered at such advantageous rates it seems like the right time to be considering the future. There are some very good fixed and tracker deals on offer to the expat with lenders competing for your business.

Mortgage providers are making it easier for expats to enter the UK market which is good news so please contact us for details of what is available.  

It’s very interesting to note that the Brexit vote seems to of had no effect on the expat market at all. Current figures show expats are taking out more mortgages than in any time gone by. Plus re-mortgages are hitting record levels.

What you will need to apply

–        Contact details

–        Property purchase details

–        Deposit available

–        Mortgage required

–        Certified proof of address

–        Certified ID (Passport)

–        Bank statements (Normally 3 months)

–        Wage slips (Normally 3 months)

–        Certified accounts if self-employed

The requirements vary from lender to lender and the above is just to give you a guide to help speed up the process.

Mortgage advice?

If you would like advice regarding an expat mortgage, please do make contact and one of our expert advisers will be pleased to help.