It has been an extremely hard year for landlords up and down the UK and also those living abroad.

The good news is that, despite all the recent changes rewards for landlords can still be exceptionally good. Demand for good quality rental property continues to rise year on year due prospective first-time buyers not being able to get onto the so called “property ladder”.

Rents are at an all-time high and will be rising later this year if the experts are correct.

The Brexit deal has been done and at first sight seems to be in the Expats favour. The hope now is the pound will now strengthen to assist all round.

Expat landlords remain confident that the future is good, and they have every right to do so as property in the UK continues to increase in value consistently. Last year alone the property owner in the UK saw their investment rise between 2-4% and you simply cannot earn this if your money is invested in a high street bank.

If you are looking to enter the expat buy-to-let market consider these points:

• Target your tenant – Students, young professionals, or families.
• Purchase the right sized property – Vast majority of tenants want 1-2 bedrooms.
• Location – Key to any success, near schools, shops, and local businesses.
• Equip your property – Ask local agents, furnished or unfurnished.
• Property – Should be clean, well decorated and meets government regulations.

Following these very simple tips will ensure you have maximised your long-term potential profitability.

Expats buy-to-let mortgages.

If you require assistance in choosing your new or re-mortgage do give one of our fully qualified independent advisers a call and we will be happy to help.

The number of expat mortgages coming through brokers has risen steeply over the last 2 years, this figure now stands at 74.3% from 64% in the last 12 months

Need for help

Brokers believe the increase in regulation and complexities of the market are the driving factors. Affordability calculations and lender criteria have become harder for consumers to understand.

It is not surprising that more and more clients are choosing to obtain their mortgage via an independent broker as lenders require more detail than ever before.

This is not to say it is more difficult to obtain an expat mortgage just far more complex. For the majority of expat clients who reside abroad communicating with a lender in the UK can be very time consuming and confusing.

Expats seem to value a personal service which is often missing from the high street banks email service, this is particularly the case with expats re-mortgaging.

Buying a home in the UK is a challenging task if done from afar so making the mortgage application as pain free as possible is obviously a huge advantage for the expat.

It is very clear that expats appreciate the value of a broker who can guide them through the process and provide quality advice on the best options available to them.

Independent broker benefits

• 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 advisers will be happy to help.

The Bank of England has held interest rates at the historic low of 0.1% in its latest base rate decision, saying the UK’s economic outlook is ‘unusually uncertain’.

The Monetary Policy Committee (MPC) voted unanimously to keep the base rate, which acts as a guideline for banks and lenders when they set their interest rates, at the level it’s been since March.

Normally the Bank holding rates isn’t surprising, but this comes after speculation that the interest rate would fall to 0% or even into negative figures.

Reports emerged in October that the Bank had written to the chief executives of several firms to ask whether their companies would be ready for a negative base rate, and it’s known that the Bank is actively exploring the option of setting a negative rate.

Why the base rate matters?

The Bank of England base rate influences how much banks and other lenders charge customers to borrow money, and the amount of interest they pay on savings.

A lower base rate generally means lower interest on savings, so your pot will grow a little more slowly. But mortgage and loan interest rates are likely to drop, too, making it cheaper to borrow.

Higher base rates usually mean that savings interest grows faster, but mortgages and loans become more expensive.

The Bank of England changes the rate to help keep inflation at around 2%, which is considered a sustainable level, raising and lowering it in line with current events. It kept the rate the same for years after the 2008 crash, but Brexit – and now coronavirus – have forced the Bank to make quick and dramatic changes.

As an expat 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 a mortgage. Many providers don’t even advertise the fact.

Brexit has not deterred expats from buying in the UK, in fact since the vote activity has increase by 13%.

The expat mortgage market is very complex, and you should seek professional advice as to what product best meets your needs.

Items you will need to apply

• 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.

Applications

Expat mortgage applications are currently at an all-time high and the outlook for 2021 remains positive. It would seem that the high property prices do not deter the investor. Expats seem to have the attitude that investing in savings accounts are a lost cause and property offers far better returns in the long run.

According to recently released figures the UK property market has been the best performing in the whole of Western Europe. It is therefore not surprising that so many people want to invest in an ever-shrinking market.

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.

 

There was a surge in re-mortgage activity in September and October of this year, as expat borrowers look to lock into cheap deals ahead of an expected interest rate rise.

Since the financial crisis in 2008 mortgage rates have steadily fallen.

However, with the Bank of England hinting that it could raise interest rates in the near future as Brexit fears take a grip, economists are predicting a hike could come as soon as January/February of next year.

Record low mortgage rates continue to sustain market activity, many of the Bank of England’s Monetary Policy Committee are now adding to the calls for an interest rate rise, this picture could very quickly change.

A “wait and see” approach is best avoided for existing expat UK homeowners considering re-mortgaging.

The number of expat mortgages approved also went up this year, suggesting the market is picking up steam before the Brexit outcome is decided..

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage, but it certainly makes sense to check how your existing deal stands up to the future.

Contact us.

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