Expats are cashing in

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Expats are cashing in

The expat new and re-mortgage market last year saw increased activity especially towards the latter part of the year. Applications for re-mortgages rose by 48% over 2016 and have to date continued in the same vein into 2018.

With the value of UK property still on the rise month on month expats have seen this as an opportunity to raise capital for alternative ventures. It is expected that property values will continue to rise over the next few years albeit at a lesser pace. The Brexit negotiations are allegedly heading to a successful conclusion but as we all know this could change at any time. The chancellor is predicting interest rate rises in the future but at a “steady” pace. All these factors are giving expats confidence in the future and capital raising seems to be the order of the day.

Lenders have responded to this activity and increased the number of mortgages available to the expat. Expats now have a good range of products to choose from with competitive rates on offer.

If you are thinking of re-mortgaging there are many pros and cons and all aspects need to be carefully considered before any decision is made. It is recommended that you seek professional advice as to whether this suits your needs both in the short and longer term.

Will rates increase?

I guess this is the “million dollars” question, if all the predictions for the long term are to be believed it is likely we will see rate increases later in the year. It is most likely these increases (if any) will be on a small scale as the Chancellor said in November last year.

Need some help?

If you are thinking of re-mortgaging or want advice on a new mortgage please do call and one of our fully qualified advisers who will be happy to assist.

Expats can save in 2018

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Expat re-mortgage loan approvals hit a nine-year high in November, just as borrowers were experiencing the first base rate rise in over a decade, Bank of England figures show.

The Bank of England base rate was increased from 0.25% to 0.5% in early November – the first increase in more than 10 years.

That month some 3,500 expat re-mortgage loans were approved, marking the highest figure since October 2008, the latest figures revealed.

The report also showed that expats borrowing using secured loans and overdrafts fell back to a near two-year low in the run-up to Christmas, prompting suggestions that rising interest rates may have had a “significant psychological impact” on some expat borrowers.

The gap between the cheapest and most expensive mortgages mean you could save an astonishing £3,000 every year by moving if you’re on an adverse deal.

It’s estimated that over 18,000 expats are languishing on their lender’s standard variable rate (SVR) and if you are one them it would be a wise move to review your mortgage NOW.

How to save

  1. Start investigating into switching your mortgage at least three months before your initial term ends –When the initial term of a mortgage ends, lenders transfer customers onto their Standard Variable Rate (SVR).
  2. Get professional help to secure the best possible deal to meet your ongoing needs.
  3. Overpay while interest rates are low –Interest rates may have crept up recently but they’re still historically low. If you’re in a position where you can afford to overpay on your mortgage, this is as good as investing money long term as it can reduce your overall debt.

Can we help? 

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

 

Interest rates remain unchanged – but for how long?

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The Bank of England left monetary policy unchanged in December, as had been widely expected.

After raising interest rates for the first time in more than a decade in November, the Old Lady of Threadneedle Street was always set for a quiet month, and that proved so, with the bank leaving interest rates unchanged at 0.5%.

At its November meeting, the bank hinted that the path of interest rates could steepen somewhat in the coming year or so, signalling the potential for another rate hike in early 2018, and possibly even another towards the end of the year, should the economy remain reasonably robust. That view was maintained in December. Any future increases in Bank Rate are expected to be at a gradual pace and to a limited extent.

The bank made clear that Brexit remains the most important influence on the British economy right now, saying that: Developments regarding the United Kingdom’s withdrawal from the European Union – and in particular the reaction of households, businesses and asset prices to them – remain the most significant influence on, and source of uncertainty about, the economic outlook.

With inflation still rising thanks to the depreciation of the pound since the vote to leave the EU last summer, the bank faces a key trade-off, balancing that inflation with the slowdown in the economy, dwindling consumer spending and declining inward investment.

Expat mortgages

If you are an expat with a mortgaged property in the UK this could affect you in 2018. As a new year’s resolution, you could be well advised to review your current mortgage deal with a view to securing a longer-term fixed deal. These are without doubt uncertain times so reviewing your longer-term plans cannot be a bad idea.

Can we assist?

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

Sustained growth for expats

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The mortgage market for expats grew between October and November after the first interest rate rise for a decade with approvals up 2.5% month on month, the latest data shows.

It may have been a case of expat borrowers looking to switch from variable rate products and lock into lower fixed rate deals.

However, approvals are still well up compared to the same period a year ago and the number of borrowers with small deposits, usually first-time buyers, being approved continued to increase steadily.

After months of speculation, the Bank of England base rate increased to 0.5% and this prompted many people to switch their mortgage and lock in a low rate. Overall approvals have increased month on month and we expect this to continue as those expats on variable rate mortgages see their monthly payments increase.

While the mortgage market has continued its impressive recent performance, there are concerns about first time expat buyers and those with small deposits being squeezed due to sky high purchase prices. Their share of the market continues to fall, which shows how important it is for lenders, Government and builders alike to do more to support buyers.

Yorkshire offered the best chance for first time buyers and other people with small deposits to get onto the property ladder. 26.3% of all loans went to this part of the market during November, a higher proportion than any other region.

Yorkshire was one of only two regions to see more or an equal proportion of loans go to small borrowers than their larger deposit counterparts, the other being the North West. In the North West 25.7% of loans went to this segment versus 25% to large deposit borrowers while in Yorkshire the ratio was 26.3% for both.

Help required?

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

Expat mortgage rates hold steady.

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Mortgage rates have been falling consistently for the past 24 months. Both fixed and tacker interest rates are now at the lowest they have been for a good many years. Rates are increasing slightly since the announcement of the bank base rate increase but are holding steady. 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 borrowers?

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 advisers are used to 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.

Weaker pound encourages expats

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New research reveals that expats and foreign nationals are snapping up UK property, while the pound is weak and prices remain very affordable outside London and the South East.

The new figures show that there has been a 20% year on year increase in expats and foreign nationals investing in UK property. These buyers are investing in both buy-to-lets and first, or second homes.

The research also reveals that in 2017, 60% of expats and foreign nationals buying property in the UK, opted for the Manchester area, while 25% choose Birmingham. However, London has seen a 60% drop in buyers, this is the result of high property prices and poor rental yields, compared with other regions of the UK.

What may surprise many is that in real terms, property prices in the UK have fallen compared with a decade ago and there is a huge North-South divide. In London, the average property value has risen by nearly 70% in 10 years, whereas some other areas have fallen as much as 40%.

This growth in investors is partly down to the availability of a wider selection of mortgages designed for working expats and foreign nationals. Investors are also attracted by the UK’s robust legal system for property acquisition, which makes it one of the easiest places in the world to buy property.

Can we help?

If you would like to know more about the range of mortgages available to expats, both new and re-mortgage please do make contact. We have a fully experienced and qualified team waiting to assist you.

Expat re-mortgaging hits record levels  

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Re-mortgaging has reached record levels and now accounts for 37.5% of all mortgages conducted according to recent research.

The proportion of expat re-mortgages has risen by nearly 13% over the last 12 months, as homeowners are increasingly switching mortgage companies to find more attractive rates.

The promise of increased interest rates has no doubt helped drive demand for re-mortgaging. More and more expats are re-mortgaging to save money but also raise capital which is locked in their properties.

Many expat homeowners and landlords who have been saddled with lenders on less than competitive interest rates, or stuck on higher standard variable rates are switching to more attractive fixed term deals. Rising property prices have also had an impact on re-mortgage growth, especially in the South East of the UK.

It is expected the demand for re-mortgaging will continue to rise in 2018, especially if there are further rate rises. There is likely to be a shift towards more consumers considering fixed rate deals as the risk of rate rises remain for the time being. Expat buy-to-let re-mortgaging has also risen and now represents 12.8% of all mortgages, up by 6% year on year.

As a general overview, if you are an expat and not locked into a penalty mortgage deal good advice would be to review it with a view to saving money.

Can we assist?

If you would like a new or re-mortgage, please do make contact and one of our fully trained advisers will be happy to help.

 

Expats continue to increase

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The last few months of this year has seen a record level of expat buy-to-let mortgage approvals as landlords look to increase their portfolios. Our recent survey of expat landlords clearly reveals they are in the market to increase their holdings as quickly as possible.

The reasons are numerous, expats are very encouraged by the demand for rental property plus rents are increasing annually. The survey revealed that over 50% of current landlords are achieving net returns of between 4.5% and 5.75% on their current portfolios. This is obviously a much larger return than any traditional savings account can currently offer.

With house values still on the increase, year on year landlords are also seeing the equity within their properties increasing at a very good rate. So, with all this positivity it is little wonder buy-to-let mortgages are increasing rapidly and November has followed the same trend.

Home ownership in the UK has fallen to its lowest level for over 15 years which may well shock some people. When you look at the overall cost of buying a property in the UK perhaps it is not quite so surprising.

Buy-to-let mortgages

UK and expat landlords are reaping the rewards of lower mortgage interest rates. With so much competition in the marketplace, lenders are being forced to make very attractive offers to lure clients towards their product even after the recent base rate rise.

We always recommend being very selective before deciding on what mortgage best suits your needs. With so many deals on offer it always pays to look at all the options, as an example a long-fixed rate deal may be very prudent with the fear of more rate rise looming.

Need some help?

If you are in need of assistance when choosing your next mortgage call one of our experienced advisers and we will be pleased to assist.

Expat landlords are in a very buoyant mood.

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2017 has seen more expat mortgage business being conducted than years gone by and figures are still improving as the year draws to a close.

This year has seen a lot of changes taking place in the buy-to-let market and it looks like being the same next year as well. The Chancellor announced many changes to the tax rules involving expat landlords.

Mortgage rates still remain in favor of the investor and even though increases are likely next year they will remain very competitive.

The last twelve months have seen a record number of expat landlords re-mortgaging to release capital and this has been used for numerous reasons including debt consolidation. Current re-mortgaging applications for October and November are again showing large increases on the same period last year.

Confidence remains high within the expat community who have buy-to-lets in the UK. This is without doubt down to the ever-increasing value of good quality properties. This looks set to continue long into the future. Even with the Brexit uncertainty property values have remained stable.

Expat buy-to-let mortgages

The range available includes fixed, tracker and standard deals with very good discounted periods. We would always recommend discussing your needs with an expert adviser who has all the up to date deals available. This course of action can indeed save you thousands of pounds in the long term. Interest rates remain competitive with some very good longer term fixed deals available.

Need help?

If you are looking for assistance with your mortgage or re-mortgage, please do not hesitate to contact one of our fully qualified advisers who will be happy to help.

 

Expat mortgage business growing fast

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This financial year has seen more new expat mortgage business being conducted than this time last year and applications are still rising as the year progresses.

Mortgage rates are at a record low fuelling the increase in business being done in all sectors of the mortgage market. Even with the recent base rate rise there are still excellent deals to be had.

September and October has seen a record number of re-mortgages as clients look to release equity built up over the years within their properties. The released equity is being used for assorted reasons including expensive debt consolidation. Expats are also re-mortgaging to fix the rate of their loan over a longer term as more base rate increases are expected in the new year.

Confidence is sky high within the expat community at present especially with those who own a property in the UK. This is due to the ever-increasing property prices.

If you are considering taking out a mortgage or re-mortgaging, please call us and one of our advisers will be happy to assist.

UK property prices increasing

According to the latest figures house prices are on the rise again, September and October saw good growth although not like years gone by but still very encouraging.

It is expected that house price increases will level out over the next year with a steady but reliable growth rate, again spelling good news all round.

So, at present the outlook for 2018 is very positive indeed, the signs are this will continue for the foreseeable future.

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.