Expats remain positive

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If there is one area of the mortgage market many expect to present a challenge then it is the expat buy-to-let, but its demise has been greatly exaggerated. This year alone has seen more new expat buy-to-let deals complete than at any time in the last 4 years. This is a sector that has confounded many experts in terms of its continued strong performance.

Another expat area that has remained strong is the first-time buyer market.. Arguably, despite affordability issues, low rates mean there has not been a better time for expats to get on the housing ladder in the UK. Traditionally the UK housing market always seems to outperform most of the other investment vehicles on offer in the UK. Even with the Brexit negotiations experts are still saying the UK property market will continue to offer value in the longer term.

There is a feeling within the industry it is only a matter of time before interest rates start to climb. This said if you are an expat considering buying property in the UK it may well be a very good time to start looking.  If you are an expat with a mortgage on a UK property this is a very good time to review it to make sure the deal you have best suits your needs.

Mortgage choices

Expats have a selection of both new and re-mortgage products to choose from. Interest rates remain at present reasonable especially compared to a few years ago. Deals including tracker and fixed are readily available from a number of lenders.

Can we help?

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

More enquiries from Asia than ever before

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Expat mortgages is seeing a surge in enquiries from Asia, as Hong Kong is identified as the most expensive city for British expatriates to live in.

A recent study carried out found that Hong Kong is now the most expensive city for British workers to reside, closely followed by Tokyo, Zurich, Singapore and then Seoul.

There has been an increase of 72% in mortgage completions for UK buy-to-let mortgages from Hong Kong residents during 2017, compared to the previous year and figures are rising this year.

The survey compares the living costs for expatriates, reviewing 209 cities worldwide and finding that Hong Kong is the most expensive, mainly due to soaring rental costs.

With the most expensive property in the world, expats living in the former British colony struggle to purchase property since the Chinese territory’s government imposed a 15% buyer’s Stamp Duty on foreign sales. This combined with tough loan-to-value mortgage requirements, such as buyers typically having to provide a 40% deposit. This situation has prompted many to look elsewhere for property investment and the UK is without doubt the most popular.

The number of enquiries for expat mortgages from Asia, and in particular Hong Kong, has been steadily rising over the past couple of years. UK property remains an attractive option for those living in countries where buying is simply not an option. Familiarity with the UK market and maintaining a tie with their homeland are all reasons why expatriates are finding comfort with UK property investment.

Help required?

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

Expats are seeing good long-term returns

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Expats who currently own property in the UK are without doubt seeing a very good return on their investment. House prices increased again last month but it has to be said this growth is slowing month on month at present. UK property historically has always been a sound and solid long-term investment and if the experts are correct it will remain so for the foreseeable future.

Property prices were up 3.7% on last year which shows a very good return on investment. These figures are general across the country, but London and the surrounding areas were showing slightly less return. It is predicted that the housing market will slow down as the year progresses. This slowdown could well be a “blessing in disguise” for first time buyers as houses are being priced out of their reach.

Housing demand in the UK remains high both from expats and residents and this fact alone should well protect prices in the long term.

Is it a good time to buy in the UK?

Well the simple answer to this is yes, if you have a good size deposit available history shows a property investment in the UK will always give good returns. It’s true many things are uncertain at present with the Brexit issue at the heart of all confusion, but the facts are clear the UK has an eternal shortage of property to meet demand.

Mortgage interest rates remain low and for that reason alone it could well be a very good time to get into this market if you are an expat. Expats for years now have seen property as a very good alternative to leaving cash stagnating in high street banks, especially recently. There are a good range of mortgages available to expats offering advantageous rates both fixed and tracker.

Like too know more?

Please feel free to contact one of our experienced advisers for any assistance you may require. We look forward to being of assistance to you.

Expat re-mortgage activity rising fast

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Recent figures just released show expat re-mortgage business is at an all-time high and rising. Looking back at the start of 2018 re-mortgage applications to date are 32.5% higher than the same period last year.

The vast majority of expat re-mortgages are borrowers taking advantage of the still low interest rates currently on offer as their fixed deals mature. The survey highlighted more than 43% of all people re-mortgaging saved on average £304.00 on their monthly payments. Many also re-mortgaged to fix their monthly payments again as they fear more interest rate rises are inevitable later in the year.

Many expats whilst re-mortgaging also released capital that had accumulated over the years, the average amounted to £22,800 per re-mortgage.

Top 5 reasons to re-mortgage

  • Better rate of interest
  • Revert to a fixed rate
  • Raise cash to pay off expensive loans
  • Reduce or clear expensive credit cards
  • Raise cash to assist child secure a mortgage

What is very encouraging is to see borrowers taking more control of their finances and seeking advice as to the best way forward after their existing mortgage deal matures. Years gone by many expat homeowners who had secured their mortgage deal just forgot all about it and “buried their heads in the sand” on maturity of the deal.

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 qualified mortgage adviser who will be able to guide you in the right direction, a wrong move could be very costly in the long term.

Need some advice?

If you are considering a new or re-mortgage and require some help please do call one of our fully qualified advisers.

Obtaining an expat mortgage

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Many of the 4 million plus 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.

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.

Brokers

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.

Lenders

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 3/6 months)
  • Wage slips (Normally 3/6 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 UK mortgage market 

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Britons living abroad, either temporarily or permanently, will need to obtain a mortgage from a lender that has chosen to lend to expats.

Typically, expats are looking to invest in buy-to-let property whilst living overseas, perhaps to provide an income in retirement or even to live in upon their return.

Aside from investors there are a great number of enquiries from individuals looking to buy properties for their families to live in – frequently where children are involved the preference is for them to be schooled in the UK.

These are just some of the reasons expats want to buy a UK property, one thing is for sure more and more expats want the security of property in their homeland.

UK property prices increasing

The latest figures show house prices are on the rise again, May and June saw growth although not like years gone by but still very encouraging.

It is expected that house price increases will level out over the next year with a steady but reliable growth rate, again spelling good news all round for expats looking to invest.

At present the outlook for 2018/19 is very positive indeed, the signs are this will continue for the foreseeable future.

Finding the mortgage to suit your needs

Securing an expat mortgage doesn’t have to be difficult, it is always recommended to get expert professional help. Using a specialist expat broker will without doubt give you the edge as they will be experienced in this type of mortgage process.

Can we help?

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

 

Expats want UK property more than ever

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Since the end of last year the expat mortgage market has seen much more activity in both new and re-mortgage applications.

The UK property market continues on an upward spiral albeit slower than years gone by and still offers potential longer-term growth and security. Expats are always keen to secure property in the UK and this year is no exception as applications for new mortgages are at an all-time high. Most experts believe these high activity levels will remain until the Brexit deal is finalised, with all the uncertainty expats want a UK foothold.

Confidence in the UK market has grown again since the turn of the year due to interest rates still being held after the threat of increases.

What does the future hold in store?

This is a very difficult market to predict in the long term, but if the past is anything to go by then UK property will hold its own and increase in value. Whatever happens with the Brexit deal property values are more than likely to remain strong. There are several factors that control prices, the main ones are listed below:

  • Supply and demand currently supply only meets 47% of the demand.
  • Mortgage interest rates are low and affordable.
  • UK economic growth is currently strong, and the outlook is stable.

So looking at the key factors the housing market looks in good shape for the future. Of course situations can change very quickly, not to mention Brexit, but on the whole the UK property market looks to be in a very healthy state especially if the supply does not increase.

Mortgage help?

Should you require any assistance with your new or re-mortgage please do call one of our fully qualified consultants and we will be happy to assist.

Expats remain very happy!

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House prices have hit a fresh record high in the UK, but property inflation has slowed to its lowest level since March 2017, according to official figures.

The average house price was up 3.9% in the year to £227,000 in the year to April, the ONS revealed today.

London house prices staged a surprise bounce in the month, rising 2.4%, with annual property inflation in the capital returning to positive territory at 1%

As a further reflection of that, prices of flats and maisonettes have been weakest over the past year – rising by just 1.7% in the year to April, to £202,000.

Their weak prices were driven by “negative annual growth in London for this property type” the capital accounting for a quarter of all flat and maisonette sales in the UK.

While flats and maisonettes struggle to command higher prices, the average price of a semi-detached house increased by the most, at 5.4%, to £315,000.

The price of terraced homes rose by 4.7% to an average of £184,304, while detached homes were up 3.95% to £342,154.

Annual house price inflation has been slowing since mid-2016, and, with the exception of October 2017, has stayed firmly under the 5% mark.

Despite that the cost of the average home rose by £19,000 in the two years from April 2016 to the same month this year.

In England, average property prices grew by 3.7% to around £244,000, while Wales saw an increase of 4.4% to £156,000.

As a result, the increase in house prices is more to do with the lack of supply of appropriate property in places where people most want to live rather than a marked improvement in confidence.

Help required?

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

Expat lending still rising and will continue to do so.

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Expat mortgage lending is forecast to reach the highest level since the financial crash of 2007 despite Brexit uncertainties, according to the latest annual market review.

If all the predictions are correct, 2018 will see the eighth year of expat mortgage lending growth.

A great deal of this growth will be driven by re-mortgage activity, figures would suggest the expat has become a great deal wiser of late and making the most of lower interest rates.

Expats buy-to-let lending looks like recovering in 2018 and 2019 despite the adverse tax changes for landlords. Again, this growth is likely to be driven by a strong re-mortgage market and an improvement in house purchase lending brought about by a higher level of “churning” in the market.

Lending via intermediaries/brokers is also expected to increase again as expats look for help in securing their mortgages. Broker activity has grown rapidly over the last 3 years as tighter lending rules have come into force.

The forecasts are based on an analysis of current trends within the housing market.

Despite the recovery of the housing market and the availability of mortgage finance since the last recession, stricter affordability rules are limiting activity which makes the figures and predictions even more promising.

UK property values in 2018

According to the latest figures house prices are still on the rise, January and February saw an average 2.3% increase (except London) as the UK economy continues to strengthen even with the Brexit situation.

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.

Expats fixing for longer

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Popularity of longer-term deals had waned at the start of the year with expat borrowers opting to fix their mortgage for two years, according to the latest report.

Greater competition from lenders keen to lure in borrowers for longer terms and rate rises on five-year deals increasing far less than those of the two-year options has caused a shift.

In April this year demand for five-year fixed-rate re-mortgages went up 40%, representing half the market according to the report. In March they made up just 28% of this market.

It also emerged the number of expat borrowers using an independent broker to re-mortgage has also hit a record high in April and May increasing from 72% in March to 84%.

Lenders are eager to attract longer-term business which has created a competitive landscape for expats. This has ensured five-year average rates have remained relatively flat month-on-month.

Five-year fixed deals tend to be more popular amongst borrowers who are seeking stability. Expats will be opting for these deals to provide some certainty amid the potential economic and political upheavals in the next few years due to Brexit.

Currently over 77% of expats re-mortgaging expect a rise in the Bank of England (BoE) base rate this year. This compares to 35% in April 2017.

After hints of a rate increase earlier in the year, sluggish economic growth discouraged the BoE from raising the base rate. Yet more than three quarters of borrowers still believe another base rate increase will happen at some point in the next twelve months.

Can we help?

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