The market so far has been largely unmoved by Brexit. Lenders have continued to drop interest rates across the board since last summer which indicates a lack of concern currently. There seems to still be a large appetite for banks to lend. The rates are very competitive and there are still plenty of high loan-to-value mortgages available to consumers.

If anything is to bring this to halt then it would be the Bank of England base rate rising. If the bank were to raise rates from 0.25 per cent to 0.5 per cent, the impact would be greater than just a rise in mortgage repayment, because inevitably confidence will take a hit. Yet so far, there have not been any firm indications that this is the way the Bank of England wants things to go.

If you are an expat with a mortgaged property in the UK now is a great time to lock in a new deal for the next few years and make the most of the low rates on offer.

Expats re-mortgaging for value

Expat re-mortgaging levels have soared to an eight-year high in September as borrowers take advantage of lower monthly repayments the latest figures have revealed.

The value of re-mortgaging fell due to a drop in the average loan size, but with overall mortgage activity down it still accounted for two-fifths of total lending in September

Expat borrowing activity has been fuelled by the lower rates on offer, rates currently are the lowest they have been for the last 7 years.

Expats who have not reviewed their current mortgage deal recently would be well advised to do so as rates are expected to rise in the future.

Help required?

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

The Bank of England has voted 7-2 to hold the base rate at 0.75% in the first split interest rate decision since June 2018.

MPC members Jonathan Haskel and Michael Saunders both voted to reduce the base rate to 0.5%.

The industry was not surprised by the decision to hold the rates.

Frances Haque, chief economist at Santander UK, said: “The decision to hold rates was widely expected, given the delay to the Brexit process and ahead of the general election due on 12 December.

“The economic data published so far for the third quarter of this year suggests the UK economy has returned to growth, although many of the fundamentals such as business investment and productivity remain weak.

“Given this, the MPC is clearly standing by its cautious approach.

“Unless there is a sudden downturn in the UK economy over the next few weeks, it’s unlikely we’ll see a change in rates this year with the MPC likely to wait until the outcome of the General Election is known.

“However, if Brexit is postponed again, continuing the uncertainty, the MPC may wish to act to bolster the economy.”

Alex Maddox, capital markets and digital director at Kensington Mortgages, added: “It’s not a great surprise to see that the Bank of England has kept the base rate on hold at 0.75%.

“Brexit extension after Brexit extension and now a December General Election mean that the bank is going to want to keep its powder dry.

“In the current environment, it would have been a very hawkish move to cut rates.

“While future decisions will very much depend on the nature and timing of Brexit, it now looks increasingly likely that a rate cut may happen in the new year to support the economy if Brexit is delayed again and this impacts businesses and investment.”

Help with your expat mortgage?

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

Expats using speExpatriates looking for a mortgage or re-mortgage on a property in the UK now have a wider choice of loans than years gone by, so it makes sense to select the best one to suit your needs.

About five million UK nationals live overseas, and many are keen to hold on to a home in the UK, or to invest in one to rent out. But the available mortgage options are quite restricted – and in most cases, you’ll need to get a specialist landlord mortgage.

It is possible to secure a standard residential home loan as an expat, but it’s tricky to arrange, lenders will want to see evidence that close family are living in the house. Since most expats work abroad and cannot live in two places, for the majority, a buy-to-let is the more appropriate solution.

You will typically need to seek out a specialist lender and this is where the expat broker can assist you in making the correct choice.

It can be a difficult process to secure a mortgage when clients are overseas, especially with the time difference and tighter lending criteria.

Another factor is the European Mortgage Credit Directive, introduced in 2016, which means individuals paid in a foreign currency now come under closer scrutiny when their loan applications are assessed. The underwriting process needs to take account of possible exchange-rate fluctuations, as well as looking at a borrower’s overall financial position.

What a broker will do for you

The broker will take control of the mortgage process, therefore relieving you of the stress and paperwork. They will be able to deal with the mortgage company suppling the loan and answer any queries they may have, saving you time and money.

Help required?

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

All the papers are have been full of doom and gloom stories in recent months heralding the death of buy-to-let and a falling housing market.

However, as they say “you shouldn’t believe everything you read in the newspapers” – the UK housing market is still a really safe and lucrative place to invest your hard-earned money. And especially if you are looking for a long-term investment, it’s a safer bet than the more volatile stock market.

Knowledge is key

Always when considering investing be sure of where your funds are coming from and that you have enough to pay deposits, legal fees and stamp duty. Maybe you already have property and are considering re-mortgaging to free up some equity?

The Bank of England base rate is currently very low and there are still some fantastic two, three, five and even 10-year fixed deals to be had.

One of the main ways banks set rates is based on how cheaply they can lay their hands on the money they lend out. This usually comes from savers or by borrowing on the money markets for a certain rate at a certain period, known as the swap rate.

Swap rates dropped last year because of global economic turbulence and Brexit but have since risen and there is a good chance mortgage rates will start to rise as a result. If you prefer the certainty of a fixed monthly repayment as opposed to a variable rate mortgage this could be for you.

Source a specialist expat independent mortgage broker to help you

As an expat investor you might find it tougher to get a mortgage because you don’t fit standard lending criteria.

A specialist broker will be able to search out lenders other than those on the high street and will know what criteria will fit best with your circumstances. As an example, many high street lenders will turn you down if you don’t have a UK credit history or aren’t on the electoral register. But a niche lender will have different criteria under which you could be eligible.

Can we help?

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

A new report just released clearly shows the majority of expats need to review their current mortgage deal.

Figures show the majority of expats do not review their mortgages when a fixed rate or term deal expires. Good news is there are plenty of good deals still available to meet the majority of expat needs. 

Reasons to re-mortgage

• To save money.
• Fix repayments
• Raise extra cash for a project you have planned.
• Your current deal is ending soon

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.

More and more people are looking for ways to reduce their monthly outgoings, one of the biggest expenses most people have every month is the mortgage payment.  It may be a wise 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. With Brexit looming nobody really knows what the outcome will be and any implications it may have on the mortgage market. If you are an expat with a mortgage which does not have penalties to change you may be very wise to see what fixed deals are on offer, better “safe than sorry” as they say.

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

Can we help?

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