EThere are many reasons to consider a re-mortgage especially if you are currently on the standard variable rate (SVR) but you should remain cautious as this is not always the correct action to take. Always seek professional independent advice as to the best way forward for yourself as your current plan may well have penalties.

The most popular re-mortgage reasons are listed below.

Securing a better rate of interest

Changing to a fixed deal to manage outgoings

Raising capital

Reducing current loans or credit cards

How a fixed rate can help you.

Expats are beginning to ask how a fixed deal can assist them now and in the future. Good news is there are still some very good deals available but who knows how long for.

A fixed rate mortgage will do exactly what it says on the tin! It fixes the payments you make to your lender for an initial period of time when the mortgage commences this is usually 2 – 5 years. These days mortgages change in structure frequently and it may be possible to get a longer period than 5 years, just ask what is available.

The benefit of a fixed rate deal is that it allows you and your family budget properly, safe in the knowledge that your mortgage payment will not increase for the fixed period. This is really useful if cash flow is tight or you don’t want the uncertainty of payments increasing without warning.  This can be very comforting if you are an expat landlord running a business as you will know your fixed outgoings and your rental income.

If your budget is flexible and you have a surplus of funds each month you may be prepared to sacrifice the security of a fixed rate. You may select to gamble that rates will reduce and select a variable or tacker type mortgage. To be honest this is unlikely with today’s low interest market but if rates increase then your decision to fix will be a very good one indeed.

Need some guidance?

Can we be of assistance with your new mortgage/re-mortgage we have fully qualified independent advisers waiting to help you.

EExpats are in ever increasing numbers trying to either get on the ladder or increase their current UK holding. The majority of expats see property in the UK as a “pension fund” or a way of laying financial security for the long term. Brexit has had it’s effect and will no doubt continue to do so until “the dust settles”.

Bricks and mortar have always been a national obsession. The wisdom that property is fundamentally a very good long-term investment has been passed down from generation to generation. To be honest over the years this wisdom has been very good advice and looks like being so for a good many years to come.

Expat mortgage applications are currently at an all-time high as they seek to establish a foothold onto the UK property market. It would seem that the high property prices do not deter the investor.

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

Property values have increased year on year for the last 10 years and look set to continue to do so albeit at a lesser rate.

Good time to buy in the UK?

The very quick and simple answer is yes.

The affordable properties that are available to purchase seem to be diminishing on an annual basis, which without doubt will mean higher prices to pay in the future. The good thing is there are still some very good mortgage deals around for expats so it could be the right time to start your search.

Need assistance?

If you require help with your current or new mortgage please call one of our experienced advisers who will be happy to assist.

EThe mortgage market in Britain is experiencing a notable change as the reasons why expats re-mortgage evolves. Expat UK home owners are moving away from short term deals and variable rates onto two and five-year fixes at low rates in moves to guarantee certainty and financial security, according to the latest reports.

Only 17% of expat owners re-mortgaged to lower their monthly repayments in December last year compared to 21% in September. 15% re-mortgaged to increase the size of their overall loan in December, a fall from 19% in September.

The analysis suggests that instead of re-mortgaging to lower monthly repayments or borrow extra money, expats appear to be nervous about interest rates increasing and re-mortgaged onto long term deals for certainty and financial security. Just 2% of re-mortgagors predict interest rates to fall in the next year, with the remaining 98% expecting rates to either stay the same or rise. The Brexit situation is without doubt having a say as to how people see the next few years panning out.

Over a third, some 37% fixed onto a longer-term deal in December and January, the greatest since numbers were first tracked, and a significant increase from 7% who previously had a fixed five-year product.

This is a meaningful change in expat behaviour when re-mortgaging. Typically, over the last year, people were re-mortgaging to save on their monthly repayments or borrow additional funds. Instead, with rates low and expectations of a rate rise high, expats are fixing for longer for added financial security.

Expats it would seem are taking shelter from future rate rises and preparing for potentially turbulent times to come. The way people borrow is changing, there is a significant decline in interest-only and variable rate deals, fixing for longer appears to be the top priority.

Can we help?

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

Expats are still suffering poor investment returnsExpats living overseas are still suffering low returns on their short and longer-term bank-based cash investments.

What does the future hold for UK expats?

A recent survey of expats showed they are turning to alternative forms of investment to increase returns. The most popular being property purchase for renting which of late has been hit by the Governments tax changes.

These changes do not seem to of deterred expats as buy-to-let mortgages rose significantly in the last financial quarter of 2018.

It is becoming far easier to secure a buy-to-let mortgage for an expat than it was 2 or 3 years ago. Restrictions and regulations have been relaxed a great deal plus more providers now see this type of business as highly profitable.

Brexit of course is on every expats mind as nobody really knows what will happen, if anything. This situation seems to have stirred more expats than ever before to try and secure a property in the UK, so it’s little surprise mortgage applications are hitting new heights.

As an expat if you are looking to increase your income in the near future this may well be a very good time to look at all the alternatives. Mortgage interest rates remain stable and affordable on both fixed and tracker deals at present so you could be making a good move in the right direction.

It is generally seen that the UK property market will remain strong for the foreseeable future even amid all the Brexit uncertainty.

Need assistance?

If you require any help or assistance with a new or existing mortgage please do call one of our advisers. We pride ourselves on attention to detail and speed of service. We look forward to hearing from you.

Mortgage borrowing in the expat sector is over 30% higher overall than 12 months ago recent figures show. The number of mortgage applications for October, November and December 2018 combined also saw the highest numbers for the last 3 years.

The really good news for the expat borrower is that application approvals reached a record high in 2018 and look set to continue in this vain.

It has indeed been an extremely busy year for brokers and lenders alike as expat borrowers have taken advantage of the low interest rates that are on offer. Brokers around the Country believe business has been enhance by the Brexit situation with Brits wanting a foothold on the UK property market.

Re-mortgaging numbers in particular have been rising month on month and continue to do so. Homeowners have recognised that interest rates are due to increase in 2019 and have taken advantage of the very good fixed rate deals that are available. The wise expat will move to re-mortgage now sooner rather than later as rises in interest rates are expected very soon.

Re-mortgage

If you are one of the thousands of expats who have not re-mortgaged, and you are still on a standard variable rate deal now is the time to review your circumstances. If the predictions are correct interest rates are due to rise early in the 2019 with further rises on the horizon. Good news is there are still some very good fixed and discount deals on offer, but it’s likely they won’t be around for much longer.

Can we assist?

If you require some help with your current or new mortgage please do call one of our fully qualified advisers.