October’s gross mortgage lending to expats has increased by 4.85% from the previous month, this is the third month on the run. In addition to the month on month increases lending this year has increased 18.67% overall.

Property continues to gain value in the UK albeit at a reduced rate, this looks like continuing for the foreseeable future unlike the rest of Europe which seems to of stagnated.

There are two factors that has contributed to this strong growth, the first being the number of re-mortgages completed and the second is the Brexit situation.

Both expats and UK residents are living in the fear that interest rates are about to jump early next year. These fears are justified as already a good many long-term fixed rate deals have been withdrawn from the market but there are still some very attractive deals on offer.

Value for money

The UK property market still offers remarkable 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.

Traditionally the UK property market has always offered good value long term investment potential and there is no reason to believe this won’t continue long into the future. The only unknown factor is what will happen after the Brexit talks conclude and how any deal will affect the housing market.

At present with low inflation, strong wage growth, falling unemployment and very competitive mortgage deals on offer the housing market will remain strong.

Mortgage advice?

If you are in need of assistance with a mortgage then call our expert advisers who are waiting to help.

 

 

As many as one in three expat homeowners in the UK don’t know what mortgage rate they are on, potentially costing them thousands of pounds each year, according to new research. Are you one of these?

The survey covered over 1500 expat homeowners with a mortgage in the UK and found that one in three (34%) didn’t know what rate they were on. A further four in ten (41%) only knew the approximate figure.

One in four (25%) of those who took part in the survey were on their mortgage lender’s standard variable rate (SVR), usually costing more than other products available from the same provider. The survey showed that only 35% of expat homeowners were on a fixed rate deal.

Looking deeper into the findings they reveal that borrowers with an average-priced home could end up paying as much as £450-£800 a month (over £4000 per year) more on their lender’s SVR.

Of those on SVR who had been on the same mortgage for at least the past five years, when asked why they hadn’t switched one in five (22%) said it wasn’t worth the hassle and one in seven (15%) claimed that they hadn’t thought about it.

There is a clear level of apathy when it comes to mortgage deals, over 70% said if re-mortgaging was made easier they would change immediately.

The re-mortgage market is competitive at the moment, so there’s a good chance that re-mortgaging will save you money. Speak to an independent expat mortgage adviser is a great place to start to find out your options, they will help make the prosses run smoothly and limit the paperwork you have to do.

Can we help?

If you would like to know more about a new or re-mortgage please do make contact and one of our qualified advisers will be happy to help.

 

A panel of industry experts has agreed that the outlook for property investment in the UK remains positive, despite the uncertainty around continued Brexit negotiations. Although there’s much uncertainty, the ambiguity has not dampened the spirits of prospective homebuyers and property investors.

Historically, real estate has proven itself to be a safe and secure asset by offering stable, long-term returns. As a result, demand for property remains high. Recent figures revealed that the average house prise in the UK rose by 3% in the 12 months to June 2018 and this positive trend has been met with enthusiasm from landlords and expats alike, with new research saying that more than half feel positive about the current state of the market.

This attitude is inspiring confidence throughout the expat sector and signifies a positive outlook for the future of the property market over the coming year, particularly in light of the fast approaching Brexit deadline.

So, despite wider market uncertainty, the returns available from owning, investing in and developing the right type of real estate continue to be favourable versus other asset classes, something that is expected to continue moving forward. This is for a number of reasons including: the supply/demand imbalance (not enough houses being built), the continued availability of cheap credit and a healthy economy. Never forget the fact that the UK remains a great place to do business.

All this has led to even more product innovation expats and landlords as lenders compete in this increasingly popular market.

Mortgage advice?

 If you are looking for an expat mortgage please do make contact, we have a team of experts waiting to help.

There is very little doubt in the expat mortgage market 2018 is the year of the expat re-mortgage. You only need look at the rates being offered by lenders – particularly in the lower Loan To Value (LTV) bands. The rates currently on offer are not going to stay this low for much longer so if you are an expat and have a current variable rate mortgage review it sooner rather than later.

Research confirms that over 50% of all expat borrowers who move to their lender’s standard variable rate after their initial deal terminates don’t re-mortgage or product transfer for 3-5 years.  Also the report shows a quarter of re-mortgagors said they find the whole re-mortgage process difficult, with 42% saying they didn’t have time to shop around.

The “shopping around” mentality is clearly far more embedded in the UK consumer than ever before; however this doesn’t always translate to mortgage borrowers, even when the savings that can be achieved are substantial.

Expats need to get the message that re-mortgaging is where significant savings can be made – especially with rates as they are now. Rates are unlikely to remain this low for much longer so acting now could save thousand in the future. If you are an expat on a standard rate mortgage would you like to save upwards of £2000 PER YEAR? These savings are of course dependent on the size of mortgage you have but surely it’s worth checking.

Warning – A re-mortgage is not always suitable for everybody as your existing deal may well have penalties attached to change within the discounted period. It is always recommended to seek professional help as to what is best advice to suit your needs.

Can we help?

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