A recent survey has claimed that thousands of expat borrowers could be missing out on a better deal by not speaking to an independent mortgage adviser when looking for a mortgage.

Its survey of over 1,000 expats found that 38% of consumers who went direct to a lender didn’t understand how a mortgage adviser could help with their search.

The findings also showed that 62% of borrowers who went straight to a lender hadn’t re-mortgaged in the last five years and 74% stayed put because they felt they had ‘a good deal’.

However, without seeking independent mortgage advice, these individuals would have missed out on mortgages deals that are only available through an independent mortgage adviser.

There are plans to use the research to tackle the misperceptions about independent mortgage advisers and raise awareness about how they can help borrowers to find the right mortgage for their needs.

Far more choice and much quicker

Borrowers going through an independent mortgage adviser have access to many more mortgages than those going direct to the lender, including specialist mortgages for the self-employed and later life lending solutions such as lifetime mortgages..

Homeowners 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 19% of those who went direct.

Borrowers who used a mortgage adviser were also overwhelmingly in favour of doing so again. 98% said that they found the support of a mortgage adviser ‘valuable’ and a further 95% said they would recommend using a mortgage adviser to family or friends.

Help required?

If you would like to review your current expat mortgage please do make contact and one of our expert independent advisers will be happy to guide you.

 

 

Figures just released show expat re-mortgage business is at an all-time high. Looking back at the start of 2020 re-mortgage applications to date this year are 31.5% higher and still rising.

A recent survey highlighted that 37% of all expats re-mortgaging saved on average £287.00 on their monthly payments. I think we would all agree that is worth having. Many also re-mortgaged to fix their monthly payments as they feared an interest rate rise was inevitable.

Many expats whilst re-mortgaging released capital that had accumulated over the years, the average amounted to £21,000 per case.

Top reasons for re-mortgaging

• Better rate of interest (Reduce monthly expenditure)
• Change to a fixed rate (Secure set payments)
• Raise cash to pay off expensive loans (Reduce monthly expenditure)
• Reduce or clear credit cards (Reduce monthly expenditure)
• Raise cash to assist child secure a mortgage (Help with deposit)

It is very encouraging to see borrowers taking more control of their finances and seeking advice as to the best way forward. In the past many homeowners who had secured their mortgage deal just forgot all about it and “buried their heads in the sand”.

There are so many pros and cons to re-mortgaging and all aspects need to be carefully considered to ensure it is beneficial for you.

Always seek professional advice from an independent mortgage adviser who will guide you in the right direction, a wrong move could be very costly in the long term.

Need some advice?

If you are considering a new or re-mortgage and require some help please do call one of our fully qualified independent advisers.

 

The report from financial intermediaries revealed that 70% of respondents had seen a rise in enquiries from British expats about buy-to-let mortgages for UK property.

These findings reflect the growing demand for buy-to-let mortgages from overseas investors; due partly to the strength of foreign currency against the pound – attributed to the ‘Brexit effect’ – which has created an investment opportunity.

Following Brexit, the pound has weakened against most major currencies including the dollar and euro. Brits living in countries where the currency is pegged to the USA’s, such as Hong Kong have been attracted to investing in property back in their home country.

It was a concern for some that the new rules from the Prudential Regulation Authority (PRA) introduced early this year, which limited the amount expat landlords could borrow and tougher lending tests, would impact demand, but the report would suggest this hasn’t been the case.

What is happening is investors, including expats, are still buying-to-let in Britain, but perhaps focusing on lower loan-to-values and using larger deposits to take the various changes into account, as well as adapting their portfolios and business models to maintain their profitability: for example by looking at up-and-coming areas across the UK instead of the more traditional rental hotspots like London.

Given the strong rental market in the UK and interest rates at an historic low, it appears that expats are still keen to keep a foothold on their home property ladder, and whilst the buy-to-let market has faced a number of challenges recently, those taking a long-term view seem undeterred.

Like to talk over your needs?

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

 

If you are sheltering from rising interest rates within the safety of your fixed rate, you may also be feeling a little nervous about what will happen when your deal ends.

Last week’s hike in interest rates to 1.25% came amid warnings the base rate could rise further to as much as 3% by the end the of the year.

Though no one has a crystal ball, and there’s no guarantee our mortgage rates will soar by this much, the predictions are leaving many homeowners feeling a mixture of concern and vulnerability.

Will these rates continue rising into 2023 and 2024? How will this play out for fixed rate deals due to expire in the next couple of years?

At the moment, lenders are increasing the rates on their mortgages to keep up with the Bank of England’s base rate increases.

This is not only the case for tracker and variable mortgages but also new fixed rates. So, anyone re-mortgaging onto a fixed rate deal now will be looking at average rates of around

What should we do to avoid being hit by mortgage rate increases?

If your mortgage is due to expire in the next six months, re-mortgaging now is an option. This is because most lenders will keep your offer live for six months. Therefore, if you were to fix your deal at today’s rates you may find they are much cheaper than November or even December’s average rates.

If your deal has longer than six months remaining, and you are due to re-mortgage in 2023 or even 2024 you may feel resigned to the fact you will eventually – when you come to re-mortgage – be hit with a much higher rate.

But there are some options for you to consider.

Overpaying your mortgage could take the pressure off future rate rises

Would re-mortgaging early help offset potential interest rate rises?

One option some borrowers with mortgages due to expire in 2023 and beyond may be considering is exiting their deal early and re-mortgage now.

However, caution to anyone considering this avenue, not least because most fixed rates carry an early repayment charge (ERC) throughout the period which will become chargeable if you switch to a new lender or deal.

Essential, get independent advice.

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 lenders requirements much quicker.

2022 has seen a large increase of 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.

Expat mortgages are now quicker to complete.

 The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 2 years.

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 6 weeks which is significantly quicker than this time last year.

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.

Like to know more?

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