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.

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.

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.

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.