The UK buy-to-let market “may have turned an important corner” with major lenders launching lower rates for expat mortgages at less than 1% over the Bank of England base rate.

This coincides with property portals, Zoopla and Rightmove, saying that the supply of houses put on the market rose by 5.9% in January with asking prices lifting by 0.9% in the same period.

The bank base rate is currently 3.5% after a series of rises last year as the central bank bids to combat inflation at 10.5%. The Bank’s interest rate was 0.1% in November 2021.

Previously, Rightmove had noted UK house prices had fallen over the latter part of last year, following former Chancellor Kwasi Kwarteng’s tax-cutting September minibudget, which accelerated already rising mortgage rates. Action taken by current Chancellor Jeremy Hunt in October and in the November Autumn Statement calmed markets, although home loans remain elevated.

We are now seeing at least one lender offering UK mortgages for expats at a margin of less than 1% over the UK base rate. It is another signal that markets are returning to a new normal, with the UK base rate now expected to remain at a much higher level than was the case since the financial crash of 2008/2009.

The inevitable result of higher UK base rates is that lenders are having to trim margins to remain competitive.

House prices have remained solid in many parts of the UK, despite steeply rising mortgage rates, as the supply of homes for sale has been outstripped by demand for property.

If you need expat mortgage advice, please do make contact and one of our independent advisers will be happy to help.

 

 

 

 

 

Recent figures show that an estimated 220,000 expats own property in the UK and the vast majority let their properties out to achieve extra income.

Expat landlords could be looking at reduced profitability on two fronts, firstly taxation and secondly an interest rate rise which looks likely.

One client of ours we recently spoke to said “as an expat with 3 rental properties I am returning to the UK for a meeting with my accountant to review the new tax laws on buy-to-lets”. “I am also currently reviewing my mortgages with a view to fixing a rate for as long as possible”.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to review all aspects of your UK property.

In the last 3 weeks we have seen a big increase of enquiries into buy-to-let fixed rate deals. Good news is there are still some very good deals to be had which could assist you protecting your profitability.

Way forward as an Expat Landlord

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws coming into force since Brexit. Secondly completely review your current mortgage deal to make absolutely sure the deal you have meets your needs now and 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.

By just completing these two simple tasks you could very well save yourself thousands of pounds over the next few years.

Need some mortgage advice?

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

 

 

Mortgage rates for Expats are unlikely to improve in the near future, so now is the ideal time for Expats to secure a fixed-rate deal on their mortgage.

 Expats who are on a standard variable rate (SVR) or coming to the end of their term have the potential to save themselves thousands of pounds on their mortgage.

Is it a good time to buy in the UK?

The very quick and simple answer is yes.

The affordable properties that are available to purchase seem to be diminishing on a daily basis, which without doubt will mean higher prices to pay in the future. The good thing is there are still some particularly good mortgage deals around for expats so it could be the right time to start your search.

What does a mortgage broker do for expats?

Essentially, they are there to help expats find the best mortgage deals in the UK. They aim to make that as simple and stress-free as possible, looking at each person’s situation and finding the best product to match their needs. Being independent is essential as they will have access

Need assistance

If you are an expat looking to secure a mortgage in the UK, please do make contact and one of our qualified independent advisers will be pleased to help.

 

Thousands of expat mortgage borrowers could be missing out on a better expat mortgage deal by not speaking to an independent adviser, research has found.

The findings also showed that 69% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years, while 74% stayed put because they felt they had a ‘good deal’.

Without seeking independent Expat mortgage advice, individuals would have missed out on the extra mortgage deals that are only available through a mortgage adviser/broker.

The analysis showed that the mortgage industry still needs to demonstrate the value of independent mortgage advice to expat borrowers – just 30% of those who went direct to the lender said that they would likely speak to a mortgage adviser next time.

Meanwhile, 60% who didn’t seek advice when they took out their last mortgage didn’t know mortgage advisers were there to help the borrower, and just over a third (34%) thought an independent mortgage adviser was there to support the lender.

It’s a fact that expat borrowers going through an independent mortgage adviser have access to far more advantageous deals than those going direct to the lender.

Expats who benefitted from a mortgage adviser searching the market for the best mortgage deal were more likely to have switched in the last five years (29%), compared to just one in five (19%) of those who went direct.

Expats who used a mortgage adviser were also in favour of doing so again. Nearly all (98%) said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using an independent mortgage adviser to family or friends.

Can we help?

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

 

 

House prices lifted by 13.6% in the year to August, valuing the average UK property at £295,903, according to the latest Land Registry House Price Index.

 

Average home prices across the country increased 0.9% over the month from July.

 

In England, house prices rose 1% in the month to August and 14.3% annually taking the average property price to £315,965.

 

While in London, house prices lifted 0.9% in the month to August and rose 8.3% annually taking the average property price to £552,755.

 

In Wales, house prices edged 0.2% higher in the month to August and rose 14.6% over the year taking the average property price to £220,059.

 

Across England, the East Midlands posted the greatest monthly rise with an increase of 2.3%, while the West Midlands saw the lowest monthly price growth, with a fall of 0.2%.

 

The Southwest reported the greatest annual price rise, up by 17%, while the capital’s annual rise of 8.3% was the lowest in England.

 

Value for money

The UK property market without doubt still offers remarkable value for money if you own a property or can afford to buy one.

Anybody who has owned 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 good value long-term investment potential and there is no reason to believe this won’t continue.

 

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.