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Expats who do not review their mortgage could be paying 1000’s more than they need

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Now more than ever expats are looking for ways to reduce their monthly outgoings, one of the biggest expenses most people have every month is the mortgage payment.

As an expat there is a lot of uncertainty at the moment with poor exchange rates and the aftermath of Covid. It may be a very prudent move to review your current mortgage to establish if it is still the best deal for you, and you are not paying more than you need to.

This will not be the case for everybody, your current deal may well be exceptionally good, but it is most certainly worth checking as the wrong deal could be costing you thousands extra every year.

Expats have an excellent choice of mortgage deals currently available, so it is a very good time to check you are not paying more than you need to.

If you decide to re-mortgage this may an opportune moment to review any expensive loans and credit cards you may have. It is likely the UK property has gained in value giving you a larger equity which could be used to reduce the expensive debt.

Reasons to re-mortgage

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • You want to pay more to clear the loan earlier and the lender will not permit this.

Reasons not to re-mortgage

  • You have a penalty on your current mortgage which makes it prohibitive.
  • You have had credit problems since taking out your current mortgage.
  • You currently have an advantageous rate which may be fixed.

Can we help?

If you would like to review your current expat mortgage do make contact and one of our fully qualified independent advisers will be happy to assist.

 

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Expats, are you thinking to re-mortgage? If so do not wait any longer

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Double digit annual growth means the equity in many homeowners’ properties will have increased a great deal in the last two years.

Figures show since the start of the pandemic the average home has increased in value by £47,568.

Many homeowners will therefore be in a position to move up an ‘LTV band’. LTV or – loan-to-value (LTV) ratio – refers to the proportion of your property’s value you need to borrow.

It maybe you are a few hundred pounds away from being able to change to a 75% LTV band which will mean you can get much better rates. Speak to an independent adviser as they can help you to achieve this.

Will the cost-of-living crisis impact my re-mortgage affordability?

There’s another reason why it’s worth re-mortgaging now rather than in a few months’ time. The cost-of-living crisis means many of us are noticing a big difference to our day-to-day spending.

From an extra £10 when you fill up your car, to the cost of your supermarket shop going up each week to the knowledge you are going to be paying an additional £600 or more on your heating bill over the year – you will probably be paying out more now than you were when you took out your mortgage.

Although lenders assess living costs when assessing mortgage applications, many have not yet updated their affordability calculators to take the current situation into account.

Therefore, by re-mortgaging now you can take advantage of a some offers which many will not there in a few weeks.

Mortgage offers last, in general, for six months. For new builds it might be longer. So, if your mortgage is due to expire in the next six months you can lock into a better deal whilst conditions are good.

Need help?

Please do make contact and one of our independent advisers will be happy to assist.

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Expats looking to fix deals as rates rise

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Expat mortgage business continues to flourish in 2022, both re-mortgage and new applications have increased as interest rates remain in the borrowers favour but they are rising.

Expats are very keen to secure and expand their holdings in the UK due to the potential long-term profits that the property market offers. A large number of expats have seen the buy-to-let market as an area of good returns whilst they are living overseas, and this continues to create a lot of interest.

Currently the biggest growth area within the expat mortgage business are fixed rate deals. Since the turn of the year and the latter part of 2021 fixed rate deals have attracted a great deal of interest.

Our advisers are reporting more and more expats are asking about fixing their mortgages as they are concerned that rates may be on the increase sooner rather than later.

Is now a good time to revert to a fixed deal?

Both UK residents and expats may wish to review their current mortgage deal to take advantage of the current low rates on offer. It is very important to remember that to cancel your current deal may not always be the best advice due to exit fees. However, if you are at the end of your current deal or on a standard rate it could be a very good time to consider a fixed deal.

At this present time there is a good range of fixed deals on offer ranging from 2 -10 years. It would be very wise to seek professional advice as to which one may suit your needs as all people have different objectives.

Can we be of assistance?

If you require some help with your mortgage or re-mortgage please do call one of our fully qualified independent advisers and we will be pleased to help.

 

 

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Expats, have you reviewed you mortgage lately?

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A former Bank of England Monetary Policy Committee member has predicted that interest rates could rise significantly in the next few years. This forecast is based on the lack of progression of the Brexit negotiations and what effect that could have on interest rates.

Inflation has now caught up with wage growth causing a sharp consumer slowdown and the weak pound has also squeezed consumers and the expectation is that households will adjust their spending downwards.

 

More and more expats are looking for ways to reduce their monthly outgoings. One of the biggest expenses most people have every month is their mortgage payment.  Keeping this in mind it would be a wise move to review your current mortgage so as to establish if it is still the best deal for you.

 

This will not be the case for everybody, your current deal may well be very good, but it is most certainly worth checking.

It is highly recommended to seek professional independent advice as to what new deal could suit your current situation.

Reasons to re-mortgage

  • To save money.
  • Raise extra cash for a project you have planned.
  • Your current deal is ending soon
  • Transfer to a fixed medium/long term deal

Help required?

If you would like to review your current mortgage deal please do make contact and one of our advisers will be happy to assist.

 

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Expats UK property search intensifies

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Overseas buyers and expats are sizing up the UK property market for potential bargains, taking advantage of the weak pound and falling property prices, according to the latest figures released

The property portal found that searches for UK property by overseas buyers have grown steadily over the last 12 months. They now account for 6.6% of all activity on the portal in the first three months of this year, compared to just 3.6% three years ago.

It said some investors are keen to capitalise on softening prices and a weak pound and are looking for discounts.

More expats choosing independent broker assistance for mortgages

The number of expat mortgages coming through brokers has risen steeply over the last 2 years, this figure now stands at 71% from 64% last year.

There has been a steady increase in mortgages sold by intermediaries to expat buyers and re-mortgagers as the market remains very buoyant indeed.

Why choose an independent broker?

Full range of mortgage choices

Industry qualified advisers

UK based for easy communication

Fully automated service

Faster completion

Assistance required?

If you would like help with your new or re-mortgage, please make contact and one of our independent advisers will be happy to help.

 

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Expat confidence is high for this year and beyond

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Expat landlords remain very confident despite all the tax and regulatory changes that have taken place. The latest survey taken recently shows that rental yields are growing modestly while tenant demand for buy-to-let property remains high in the UK.

Expat landlords are still looking to add to their portfolios amidst all this doom and gloom. One in every 5 expat landlords surveyed clearly stated they would like to increase their property holding within the next 5 years.

Demand for good quality property in the UK remains high, expats see the UK property market as a sound and secure long-term investment. One landlord interviewed said, “as long as the rental income covers the mortgage payment I will remain happy”. “I am confident that in 10 years my properties will have increased substantially in value, and this is what I am looking for”.

There is no reason to suspect that property values will reduce in the near future, in fact due to demand they are likely to continue to increase.

Expat buy-to-let re-mortgage

Those existing expat landlords who are looking for ways to increase their property portfolios are raising deposits by re-mortgaging their existing properties to release the equity.

With UK property prices increasing all the time you could be very surprised just how much equity is sitting there unused. Please do seek advice before embarking on this course of action as it is not always suitable and could be a very negative move in the long term.

Mortgage assistance?

If you are contemplating entering this market or require assistance with a mortgage/re-mortgage please do contact us. We have experienced independent advisers who will find the correct deal for you.

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Expats will be happy with 2021

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UK house prices ended the year at a record high, according to Nationwide, with the price of a typical home now £254,822.

This represented double-digit annual price growth (10.4%), or £24,000 on an average property.

The building society said that 2021 was the strongest year for house price growth since 2006.

Demand has remained strong in recent months, despite the end of the stamp duty holiday at the end of September. Mortgage approvals for house purchase have continued to run above pre-pandemic levels, despite the surge in activity seen earlier in the year.

Indeed, in the first 11 months of 2021 the total number of property transactions was almost 30% higher than over the same period of 2019.

At the same time, the stock of homes on the market has remained extremely low throughout the year, which has contributed to the robust pace of price growth.”

Strongest performers

Wales ended the year as the strongest performing region, with house prices up 15.8% year-on-year. Price growth remained elevated in Northern Ireland at 12.1%, and Scotland saw a 10.1% rise.

In England prices rose by 9%. The Southwest was the strongest performing English region, with annual price growth of 11.5%, closely followed by the Outer Southeast, which saw annual price growth increase to 11.3%.

The Northwest saw the strongest growth of the regions in northern England, with annual price growth of 11.2%.

London was again the weakest performer, with annual growth remaining at 4.2%.

What will happen in 2022?

It appears likely that the housing market will slow next year, since the stamp duty holiday encouraged many to bring forward their house purchase in order to avoid additional tax.

The Omicron variant could reinforce the slowdown if it leads to a weaker labour market. Even if wider economic conditions remain resilient, higher interest rates are likely to exert a cooling influence. Indeed, house price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favourable than before the pandemic struck.

However, the outlook remains extremely uncertain. The strength of the market surprised in 2021 and could do so again in the year ahead.

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Expat mortgages and how to improve the turnaround time.

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Most expats have a strong desire to buy or retain ownership of a residential property in the UK due to ever increasing property prices.

Certain parts of the country are stagnating in terms of increasing but overall the UK market is as vibrant as ever. There is still a lack of housing which makes the buy-to-let market very attractive to expats who want a foothold in the UK and achieve a return on their capital. If you look at the interest rates on offer at the major banks it’s little wonder why expats don’t see savings as a way forward.

Whatever reasons you may have for considering purchasing a house or flat in the UK, the good news is that there are lenders who are more than willing to offer expats mortgages. Many providers don’t even advertise the fact.

The expat mortgage market is very complex, and you should seek professional advice as to what product best meets your needs. We have a select number of companies offering very favourable rates which are tailored to suit most needs, including buy to let.

Items you will need to apply

  • Contact details, email, whatAspp etc
  • Property purchase details
  • Deposit available
  • Certified proof of address
  • Certified ID (Passport)
  • Bank statements (Normally 6 months)
  • Wage slips (Normally 6 months)
  • Certified accounts if self-employed.

These requirements vary from lender to lender and the above is just to give you a guide to help speed up the process. Contact us for any assistance you may require.

Can we assist you?

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

Interest rate fears in the mortgage market, expats be aware

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Brexit, a hefty COVID bill, inflation, and the rising cost of energy, are just a few of the factors causing the price of everything to go up. So it is understandable that there’s a marked level of fear among homeowners at a rise to interest rates. Is it justified? In my opinion, no.

Firstly, interest rates have been at historic lows for the past decade so many newer homeowners won’t have any experience of higher rates. Homeowners who saw interest rates of almost 15% at the end of the 1980s are likely to be less concerned by the rise of 3.5% predicted in the coming years.

Secondly, their rock-bottom lows always meant that the only direction for them to travel was up, and this would have happened regardless of global factors. Lastly, and most importantly, lenders stress test interest rate factors in great detail before approving mortgages – eager to avoid the housing crash that befell many back in 2008.

To reiterate, the fear around a rise to mortgages is understandable, as it will sit alongside a rise to the cost of food, fuel, travel, and just about anything else. Subsequently, we will see a period of adjustment where homeowners will need to look carefully at their spending and factor in how much a rise in their mortgage will affect them. Of course, it is important to note that these worries are also dependent on what type of mortgage you have.

Variable vs fixed-rate mortgages

If you have a expat fixed-rate mortgage, there’s even less reason to be concerned right now as the rise in interest rates won’t affect how much you’ll repay. This will only become a factor when you re-mortgage or look for a new one as it may affect how much you can borrow.

There’s understandably more concern for those on variable rate mortgages who will see a rise in line with interest rates, however, these scenarios will have been stress tested by brokers who would lend based on how an interest rate rise will affect someone’s ability to repay.

Let’s not forget that those on a variable rate have enjoyed low-interest levels for some time and will know the pros and cons of their choice, particularly as a big benefit is there being no early redemption fees if you want to get out of your mortgage early.

 

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Getting a expat mortgage – this will help!

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If we put Brexit to one side for the moment, there are many expats originally from the UK looking to acquire property in their former homeland. The value of sterling has fallen since 2016 but seems to be making a recovery since the UK’s exit from the EU.

As an expat is it difficult to get a mortgage on a UK property?

Criteria

There are a number of items to take into consideration when looking at expat mortgages. These include

  • Proof of income
    • Using assets as security
    • Credit history
    • Identification and address

Proof of income

If you are employed by an international company, with a footprint in the UK, this is probably the Holy Grail for lenders and borrowers. You will likely be paid in sterling, have a good track record and be able to prove your income. The situation can be different if you have your own company, you are self-employed, or you are paid in a foreign currency.

Credit history

In many ways creating your own credit history in the UK is something you can begin well before you make an expat mortgage application. For many expats, in the far-flung countries of the world, there may not be a credit history system and even if there is, it may not be as accurate as its UK counterpart

Can we help?

As independent expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.