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Expats lending expanding

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March 2020 gross mortgage lending to expats has increased by 5.1% from the month before, this is the fourth month on the run. In addition to the month on month increases lending this year has increased 16.2% overall.

Experts believe these strong figures are down to the Brexit negotiations progressing albeit slowly but positively. There is definitely less confidence in the property values of other European countries. Property continues to gain value in the UK at a steady rate and looks like continuing for the foreseeable future unlike the rest of Europe. Covid-19 has had an effect on the market but the majority of experts believe this will be very short lived.

One other factor that has contributed to this robust growth is the number of re-mortgages completed. Both expats and UK residents are living in the fear that interest rates are about to jump. These fears are justified as already a good many long-term fixed rate deals have been withdrawn from the market but there are still some extremely attractive deals on offer.

UK property offers stability

The UK property market without doubt still offers 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.

It is expected that house price increases will level out as the year goes on with a steady and reliable growth rate, again spelling good news all round.

At present the outlook for 2020 and beyond is very positive within the UK property market, the signs are this will continue for the foreseeable future.

To sum up – traditionally the UK property market has always offered excellent value long term investment potential and there is no reason to believe this won’t continue.

Mortgage advice?

If you are in need of assistance with a new or re-mortgage, then please contact our expert advisers who are waiting to help.

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Expats are becoming active in the market again

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The number of expats buying a home in the UK with a mortgage has bounced back to the levels seen before the coronavirus hit the world.

Totals of approved expat mortgages for house purchases in May reached the highest level since January earlier this year.

The number of loans in the pipeline for expat homeowners re-mortgaging to a new deal also increased significantly. The current trend compared with the previous months is on an upward spiral and looks like continuing. This is more evidence that the UK housing market is going to remain stable even with all the uncertainty the virus has brought to the market.

Why is this happening?

The mortgage figures support anecdotal evidence from estate agents that following a brief dip in confidence after the virus gripped, expat and UK buyers are once again returning to the housing market.

But despite the increase, mortgages for expats buying a house are still 4% lower than they were in October last year.

Who does it affect?

The fact that buyers appear to be returning to the market is obviously good news for people trying to sell a property. The return in confidence may also encourage more vendors to put their homes up for sale, increasing the choice available to house hunters.

But the flip side of the situation is that buyers are also likely to face increased competition for properties from other buyers, which is likely to force house prices higher.

Can we help?

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

 

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Expats still looking at buy-to-lets for income

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There has been a marked increase in the number of enquiries from expats into      buying-to-let in the UK a recent report has highlighted. This activity has increased since the UK left the EEC on 31st January 2020.

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.

 

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Expat mortgages

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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.

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.

Brexit has not deterred expats from buying in the UK, in fact since the vote activity has increase by 13%. After the referendum the industry feared expats would hold back purchasing but that has not been the case.

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

  • 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.

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Expats are planning ahead

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Data released today for May revealed expat re-mortgages were up by 11% while refinancing with additional borrowing increased by 6.4%.

The spike in expat re-mortgaging has been attributed the uncertainty after the coronavirus struck fear into borrowers.

Future stability

It is not surprising that re-mortgaging numbers have increased, pressing home the message that expats simply want or have stability in uncertain market conditions generated by firstly Brexit then Covid-19.

Competition

Others thought the rise was also attributable to strong competition between lenders who were keen to attract business. Re-mortgaging is also consistent with borrowers opting for cheap fixed rates in the main.

Lenders are keen to lend and hardly a day goes by without another cutting its rates to attract business. Strong expat mortgage figures are mainly down to the re-mortgage market, with competition between lenders aiming to attract as much business as possible underpinning performance.

Expat buy-to-let

The data also provided further evidence of the challenges facing the expat buy-to-let market, with this area of lending being the only sector in which figures fell during May.
UK Finance revealed 3.5% fewer buy-to-let home purchases took place during May compared to the same month in 2019.

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.

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Expat asset growth reaps confidence

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House price growth reached its highest level for 18 months at 2.3% for the year to February, the latest index from Nationwide Building Society shows.

Average UK house prices also climbed by 0.3% month on month to reach £216, 092.

Nationwide chief economist Robert Gardner says: “While overall economic growth ground to a halt in the final three months of 2019, labour market conditions remained buoyant and borrowing costs low.

“The decisive election outcome may have provided a boost to buyer sentiment.

“Recent data releases indicate that the housing market has gathered momentum in recent months and the latest house price figures are in line with that trend. “The number of residential property transactions and mortgages approved for house purchase increased around the turn of the year and surveyors have reported an increase in new buyer enquiries.”

Looking ahead, economic developments will remain the key driver of housing market trends and house prices Gardner believes. He adds: “Business surveys suggest that activity recovered in the New Year, but there are still significant uncertainties that threaten to exert a drag on the economy in the coming quarters.”

“The global economic backdrop remains challenging, with the coronavirus outbreak expected to weigh on global activity in the coming quarters. Investment is likely to remain subdued until the UK’s future global trading relationships become clearer, which is unlikely until early next year.

“Overall, we expect the UK economy to continue to expand at a modest pace in 2020, with house prices remaining broadly flat in 2020 as a whole.”

The property market is feeling significantly more upbeat now that Brexit uncertainty has been lifted. We’re by no means out of the woods yet, as trade negotiations with the EU could easily turn sour and hit sentiment.

 

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Are you an expat with a UK mortgage?

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

The savings can be substantial and very rewarding.

The near all-time low rates will not last forever, the wise expat should look to secure a deal and speak to an independent broker straight away.

Independent brokers

Not only can brokers offer a far wider range of products and options for consumers which they may otherwise not have access to, or the time to find, but their invaluable expertise will be able to help you secure a great deal on your mortgage.

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.

Coronavirus – Expats are asking, can I still apply for a mortgage?

Definitely yes! One big difference between the challenges of 2020 and the economic turbulence of 2008’s credit crunch is that there is no issue with the liquidity for banks and building societies.

They have the means and the willingness to lend. However, what we are seeing are disparities with how each lender responds to the current situation.

Need assistance?

Our professional independent advisers are used to dealing with all types mortgages, they have vast experience in the expat mortgage market.

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Expats surge in interest

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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 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.

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.

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Expats are reviewing their mortgage deals since Brexit

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There has been a surge in re-mortgage activity 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. This led to a number of lenders slashing their rates and competition in the mortgage market heating up.

However, with the Bank of England hinting that it could raise interest rates for the first time in a decade in order to curb inflation, economists are predicting a hike could come as soon as November this year. Record low mortgage rates continue to sustain market activity but given even the most dovish members 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 for the second month in a row, suggesting the market is picking up steam following the UK leaving Europe and now the Coronavirus.

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 advisers will be happy to help.

 

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Expat mortgage rate news

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The Bank of England has refused to rule out cutting interest rates to below zero to boost the economy, but the move would penalise savers while rewarding homeowners.

The Bank’s governor, Andrew Bailey, has confirmed that negative interest rates are under “active review” after being questioned by MPs on Wednesday. Speaking at a hearing with the Treasury Select committee he told MPs that the Bank was looking at how effectively other central banks have used negative interest rates. He said “We do not rule things out as a matter of principle. That would be a foolish thing to do. But can I then follow that up by saying that doesn’t mean that we rule things in.”

Policymakers are considering negative interest rates after official figures showed that inflation had fallen to a four-year low of 0.8% in April – well below the Bank’s 2% target. The Bank has already cut the base rate to a record low of 0.1% to help support the economy amid concerns about the coronavirus pandemic. Lower interest rates can be used to help boost the economy as they make it cheaper for households and businesses to borrow money.

Japan’s central bank and the European Central Bank have both already adopted negative interest rates.

How do negative interest rates work?

If a country’s central bank sets its base rate below zero, high street banks must pay to deposit cash with it.

It is an extreme measure designed to encourage banks to lend more money to businesses and consumers in order to stimulate the economy.

For example, if the interest rate goes below zero it will encourage high street banks to offer cheaper loan rates to the public.

How could negative interest rates affect savings?

For savers negative interest rates are huge problem as they will see their cash eroded. This is because they are will be charged by banks to look after their cash. If the bank cuts the base rate below 0% this means further woe for savers who have already seen rates plummet this year.

The situation for savers is desperate and things just continue to get worse. If anyone does offer negative savings rates it would be the big banks, but I do not see it happening. Savers faced with having to pay to keep their money with a provider will find other things to do with it.