Expat mortgage applications increasing daily

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Rising levels of mortgage enquiries, applications and completions show that a significant number of expat first-time buyers are still both willing and able to get a foot on the UK property ladder.

The industry feels this surge of interest is partly down to the Brexit situation, expats are very keen to acquire property in the UK due to the ongoing uncertainty. The other main factor is the poor returns received when investing in property in other European countries.

UK property values remain stable which is a testimony to the long-term potential growth this market offers. Even with all the uncertainty in Europe and the UK, the market remains resilient and profitable, which is why expats see this area as good financial security.

It seems that expat first-time buyers are the ones having the most luck. Over two-thirds of mortgage applications by expat first-time buyers were successful in the first six months of 2018. The average number of expat enquiries has also risen dramatically this financial year as expats look to get a foothold on the UK property ladder.

Mortgages are not as easy to obtain as in the past but there are still good options open to the new investor and people wanting to re-mortgage.

It is strongly recommended using an independent broker as the application process can be somewhat stressful. An independent broker will have access to all products available and will advise accordingly.

Can we help?

If you are looking to invest in the UK please do contact us and one of our qualified advisers will be happy to assist.

 

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Expat mortgages now much quicker

The time it takes to complete a new or re-mortgage for expat’s has reduced significantly in the last 18 months.

The industry is seeing a new application in a straightforward case complete in a matter of weeks rather than months. A straightforward re-mortgage is now on average completing in less the 5 weeks which is significantly quicker than 18 months ago.

A survey of expats applying for a mortgage was taken recently and it clearly showed one of the most important factors in the mortgage process was the speed of advancement, a close second was ease of application.

Good news is the lenders have taken notice of the findings and have reacted well by speeding up the process considerably.

Expats are now using an independent broker more than ever before to secure their deals whether it be a new or re-mortgage. The survey showed using a broker will reduce completion times, they are fully versed in the expat mortgage process and able to react to the lender’s requirements much quicker.

2018 has seen a large increase in approved mortgage applications compared to the same period last year. These increases show how restrictions are being eased by lenders as they compete for every single bit of business. This coupled with record low-interest rates is indeed good news for the expat borrower.

Lenders are still holding interest rates steady as the prospect of the Bank of England raising rates has receded slightly. All this positive news is giving the borrower confidence in the longer term, what happens after the Brexit negotiations are complete remains to be seen.

Like to know more?

If you require help with your new or re-mortgage please do contact one of our fully qualified advisers who will be happy to assist.

 

Expats still wanting buy-to-lets

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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 is a sector that has confounded many experts in terms of its continued strong performance.

It would seem expats find this area of investment still highly profitable, not only for the extra income it provides but the longer growth potential.

Yes, property prices in the UK may have stabilized of late but if you look at the history this is not unusual. Brexit undoubtably is having an effect on the property market and who knows what will happen, one thing is for sure property will always be in demand and that means good longer returns on an initial investment.

Another expat area we expect to remain 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. Investment returns from traditional savings accounts remain very poor and this is a major contributing factor to the property investment market.

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.

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.

Expat landlord or would like to be?

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With the new tax changes that have come into force recently, expats are strongly advised to seek advice from an accountant on what can be done to maximise profitability.

Expat landlords could be looking at reduced profitability due to the tax relief on mortgage interest paid being changed. There is also a new stamp duty level that has been introduced from April 2016 so any expat contemplating a purchase needs to be fully informed.

Looking at the immediate future it would seem to be very good advice if you are an expat landlord to seek professional assistance as to the options available.

A local accountant we spoke to said, “We are getting more and more expats than ever before coming to us to seek advice on incorporation or more general tax advice”.

The way forward

Firstly, get in touch with an accountant and see what can be done to reduce the effect of the new tax laws that have come into force. It is likely the accountant will recommend setting up a limited company to enable more tax advantages. Good news for expats is you can have a limited company registered in the UK whilst living overseas.

Secondly, completely review your current mortgage deal to make absolutely sure the current mortgage you have meets your needs now and in the longer term. It may very well be you currently have the correct mortgage, but it won’t do any harm to check it out.

It could be a very good time to consider re-mortgaging to release capital if required. By just completing these two simple tasks you could make huge savings over the coming years.

Need some mortgage advice?

If you wish to review your current mortgage please do contact one of our qualitied advisers and we will be pleased to help.

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.