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Expats are still suffering poor investment returns

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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.

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Expats should check their current mortgage deal

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The financial incentive for expat mortgage borrowers reaching the end of their current fixed rate deal to re-mortgage to a new deal has soared to an 11-year high.

According to the latest Moneyfacts, borrowers could save more than £3,000 a year by opting for a new fixed rate mortgage rather than sitting on their existing lenders standard variable rate (SVR).

The main reason for this is that expat borrowers who took out a two-year fixed rate mortgage two years ago have been enjoying some of the lowest rates ever seen. Indeed, in January 2017, the average expat two-year fixed rate mortgage came with a rate of 3.85%.

Now, however, those borrowers who took advantage of these highly competitive mortgages two years previously will be moving onto an SVR unless they choose to re-mortgage elsewhere.

In terms of repayment amounts, the typical expat borrower with a £200,000 repayment mortgage over a term of 25 years could therefore expect to see their monthly payments rise by £300 a month – or £3600 a year – if they remain on their current lender’s SVR.

However, by choosing to re-mortgage to a new short-term fixed rate deal – the typical repayment would be £250 a month (or £3000 a year) cheaper than if they did not re-mortgage.

Want to check your deal out?

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

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Expat mortgage borrowing growing

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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.

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Bank of England base rate held at 0.75%

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BThe Bank of England’s monetary policy committee has voted unanimously to keep the base rate at 0.75%.

The rate has stayed at this level since it was raised from 0.50% in early August last year.

The meeting minutes show that the committee believes that the softer growth seen both domestically and internationally is “likely to prove only temporary,” and that CPI inflation is expected to settle a “little above 2% in the medium term”. Currently it sits at 2.1%.

The minutes go on to say that if the economy were to develop as expected, monetary policy would be tightened “at a gradual pace and to a limited extent.”

In terms of the housing market, the MPC expects the UK House Price Index to be broadly flat in the first quarter of this year, in line with indicators provided by Nationwide and Rightmove. Furthermore, the committee expects housing investment to fall within the same time frame.

The decision to hold rates was widely expected by both the market and commentators, given the continued uncertainty around Brexit.

Although inflation remains slightly above the 2% level and real wage growth continues its current trend, the MPC looks to have remained cautious in its approach, wanting to wait until the outcome on Brexit is known before raising rates further.

Assuming a Brexit deal can be reached before 29 March, the MPC will now likely wait until after this point before hiking rates again.

This is good news for expats with mortgages, however, if you are an expat who has a mortgage on a variable rate it would be a good idea to review it as soon as possible.

Help required?

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

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Expats looking to fix deals

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Expat mortgage business continues to flourish in 2019, both re-mortgage and new applications have increased as interest rates remain in the borrowers favour.

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 2018 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 advisers and we will be pleased to help.

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Using a broker for an expat UK mortgage

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UUsing an independent broker in the UK you’ll enjoy a number of advantages compare to “going it alone”.

With the correct advice and support securing an expat mortgage can be a very simple process. Getting this support is a vital component in the chain of events, due to the applicant’s location, as it is likely he or she will be living abroad.

These include:

  1. Choice of deals currently available
  2. Choice of lenders
  3. Expert advice
  4. Fully qualified adviser
  5. Ease of communication with the lender

Despite all these advantages some believe they will be better off speaking to one bank in the UK about the loan they require. Experience shows that this is just not the case as you will only have a couple of deals to choose from, it is far better to have all options open to you. Selecting the correct deal for you can save a large amount of money in the long term.

The majority of UK based brokers will tell you the importance of having the loan in principle in place before you start your search. A broker will be able to do this for you very quickly and without any undue stress. Once issued this will give a good platform to work from and give you certain advantages. Having this loan in principle will give you better negotiating power, show the seller how serious you are and speed up completion.

Using a broker who is UK based will without doubt make the process far easier and less stressful.

Can we assist?

If you require help with your new or re-mortgage please do contact one of our fully qualified advisers.

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Expat mortgage review

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It is predicted to be a very turbulent time ahead in the housing market as the Brexit negotiations hopefully conclude. Nobody really knows how this will affect the housing market as so far all the expert predictions about Brexit have been way off the mark.

One thing you should do if you have an expat mortgage is to have it reviewed to ensure you have the best deal available to protect you over the next few years. It may well be very good advice to check out what fixed rate deals are on offer and if they could help you in your planning.

Re-mortgage benefits

There are many reasons you may wish to consider a re-mortgage but be very careful as this is not always the best advice. As an example you may currently have a deal which if changed would incur penalties. There will be other options open to you such as a second charge loan and this should be given careful consideration if you wish to raise cash. Some of the reasons for a re-mortgage are listed below.

  1. Secure a better rate of interest.
  2. Change to a fixed term deal
  3. Raise capital from the equity within the property
  4. Reduce expensive debt, credit cards etc

There are many pros and cons to re-mortgaging and all aspects need to be carefully considered to ensure it is beneficial for you. Always seek professional advice from a mortgage adviser who will guide you in the right direction, a wrong move could be very costly in the long term.

Need help?

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

 

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Looking to buy property in the UK as an expat?

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Whatever reasons you may have for considering purchasing a property 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. 

As many as three million expats have a strong desire to own their own property in the UK. Property prices seem to be rising all the time and its little wonder the majority of expats seek UK ownership. It’s true certain parts of the country are stagnating in terms of increasing but on the whole the UK market is as strong 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 get a decent return on their capital.

Brokers roll

If you want an expat mortgage a good place to start is finding a broker who specialises in this area. Obtaining an expat mortgage can be very time consuming especially as you are likely to be resident abroad.

An independent broker will have all options open to you on hand and will be able to act efficiently on your behalf. A broker being UK based will save you many hours of extra work as they are on hand to act on your behalf.

Why a broker?

The expat mortgage market is very complex and not all lenders offer this product in their portfolio. Independent brokers will have full access to all products available and be able to advise the most suitable for your needs.

What you will need to apply

  • Contact details (email address 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, number of months vary from lender to lender

These requirements vary from lender to lender and the above is just to give you a guide to help speed up the process.

Help required

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

 

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Expats increasing UK holdings

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Expats 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 future.

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.

Expat mortgage applications are currently at an all-time high and the outlook for 2019 remains positive. It would seem that the high property prices do not deter the investor, a recent client commented “with so much uncertainty in Western Europe property the UK offers remarkable value even with the Brexit uncertainty”.

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.

Is it a good time to buy in the UK?

The very quick and simple answer is yes, if you have the funds for a deposit now would seem the right time to buy. 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.

Brexit

This is the one only unknown area that could affect the property market, if all the experts are correct it is unlikely to have any lasting long-term damage.

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.

 

 

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Interest rate rise next year?

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Expats are quickly moving to fixed rate mortgage deals more frequently than ever before. Brokers around the country are reporting a significant increase in re-mortgaging to a fixed deal in the last 9 months.

Base rates may well be on hold at present and mortgage rates are at the lowest they have been for many years. One thing is for certain if the base rate rises then mortgage interest rates will very soon follow suit.

A recent survey of expats showed that if this did happen over 46% will not be prepared for the increased expenditure. The survey shows the majority of people have taken for granted the current low rates on offer. This may well be a very dangerous attitude to adopt as things can change very quickly in the world of finance. The uncertainty of Brexit looms over the mortgage market and experts are predicting controlled interest rate increases are coming sooner rather than later.

Protecting yourself is easy

With all the above considered it is a very good time to look more closely at your current mortgage deal.

Every expat will have different needs and objectives but one thing we all have in common is saving money. If your current mortgage deal has no exit penalty or is coming to the end of its deal period you may wish to look at a fixed rate deal.

Good news is there is a competitive selection of deals on offer and these should be given due consideration if you want to maintain lower interest payments.

Can we help?

If you require assistance or would like to talk over your current mortgage contract please do call one of our experienced advisers and we will be pleased to help.