Almost five million Britons live or work outside the UK and many of them don’t want to give up property ownership in the UK. Over the past 10 years, expat mortgages have grown in stature as more Brits see owning a property in the UK as a very good long-term investment.

It’s no secret that most European properties do not give the sort of investment returns that one in the UK does, so it’s little wonder expats look to secure property in their homeland.

Who needs an expat mortgage and what are the typical reasons? 

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.

Whilst fluctuating exchange rates can, at times, provide a good opportunity for investors, it is also true to say that many expats earn better salaries abroad than they would do here in the UK. A lower cost of living means they have more disposable income and want to invest in UK property.

Aside from investors inquiries from individuals looking to buy properties for their families to live in – frequently where children are involved and the preference is for them to be schooled in the UK.

Selecting a 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.

Expat re-mortgage loan approvals hit a nine-year high in November, just as borrowers were experiencing the first base rate rise in over a decade, Bank of England figures show.

The Bank of England base rate was increased from 0.25% to 0.5% in early November – the first increase in more than 10 years.

That month some 3,500 expat re-mortgage loans were approved, marking the highest figure since October 2008, the latest figures revealed.

The report also showed that expats borrowing using secured loans and overdrafts fell back to a near two-year low in the run-up to Christmas, prompting suggestions that rising interest rates may have had a “significant psychological impact” on some expat borrowers.

The gap between the cheapest and most expensive mortgages mean you could save an astonishing £3,000 every year by moving if you’re on an adverse deal.

It’s estimated that over 18,000 expats are languishing on their lender’s standard variable rate (SVR) and if you are one them it would be a wise move to review your mortgage NOW.

How to save

1. Start investigating into switching your mortgage at least three months before your initial term ends –When the initial term of a mortgage ends, lenders transfer customers onto their Standard Variable Rate (SVR).
2. Get professional help to secure the best possible deal to meet your ongoing needs.
3. Overpay while interest rates are low –Interest rates may have crept up recently but they’re still historically low. If you’re in a position where you can afford to overpay on your mortgage, this is as good as investing money long term as it can reduce your overall debt.

Can we help? 

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

 

The mortgage market for expats grew between October and November after the first interest rate rise for a decade with approvals up 2.5% month on month, the latest data shows.

It may have been a case of expat borrowers looking to switch from variable rate products and lock into lower fixed rate deals.

However, approvals are still well up compared to the same period a year ago and the number of borrowers with small deposits, usually first-time buyers, being approved continued to increase steadily.

After months of speculation, the Bank of England base rate increased to 0.5% and this prompted many people to switch their mortgage and lock in a low rate. Overall approvals have increased month on month and we expect this to continue as those expats on variable rate mortgages see their monthly payments increase.

While the mortgage market has continued its impressive recent performance, there are concerns about first time expat buyers and those with small deposits being squeezed due to sky high purchase prices. Their share of the market continues to fall, which shows how important it is for lenders, Government and builders alike to do more to support buyers.

Yorkshire offered the best chance for first time buyers and other people with small deposits to get onto the property ladder. 26.3% of all loans went to this part of the market during November, a higher proportion than any other region.

Yorkshire was one of only two regions to see more or an equal proportion of loans go to small borrowers than their larger deposit counterparts, the other being the North West. In the North West 25.7% of loans went to this segment versus 25% to large deposit borrowers while in Yorkshire the ratio was 26.3% for both.

Help required?

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

New research reveals that expats and foreign nationals are snapping up UK property, while the pound is weak and prices remain very affordable outside London and the South East.

The new figures show that there has been a 20% year on year increase in expats and foreign nationals investing in UK property. These buyers are investing in both buy-to-lets and first, or second homes.

The research also reveals that in 2017, 60% of expats and foreign nationals buying property in the UK, opted for the Manchester area, while 25% choose Birmingham. However, London has seen a 60% drop in buyers, this is the result of high property prices and poor rental yields, compared with other regions of the UK.

What may surprise many is that in real terms, property prices in the UK have fallen compared with a decade ago and there is a huge North-South divide. In London, the average property value has risen by nearly 70% in 10 years, whereas some other areas have fallen as much as 40%.

This growth in investors is partly down to the availability of a wider selection of mortgages designed for working expats and foreign nationals. Investors are also attracted by the UK’s robust legal system for property acquisition, which makes it one of the easiest places in the world to buy property.

Can we help?

If you would like to know more about the range of mortgages available to expats, both new and re-mortgage please do make contact. We have a fully experienced and qualified team waiting to assist you.

The last few months of this year has seen a record level of expat buy-to-let mortgage approvals as landlords look to increase their portfolios. Our recent survey of expat landlords clearly reveals they are in the market to increase their holdings as quickly as possible.

The reasons are numerous, expats are very encouraged by the demand for rental property plus rents are increasing annually. The survey revealed that over 50% of current landlords are achieving net returns of between 4.5% and 5.75% on their current portfolios. This is obviously a much larger return than any traditional savings account can currently offer.

With house values still on the increase, year on year landlords are also seeing the equity within their properties increasing at a very good rate. So, with all this positivity it is little wonder buy-to-let mortgages are increasing rapidly and November has followed the same trend.

Home ownership in the UK has fallen to its lowest level for over 15 years which may well shock some people. When you look at the overall cost of buying a property in the UK perhaps it is not quite so surprising.

Buy-to-let mortgages

UK and expat landlords are reaping the rewards of lower mortgage interest rates. With so much competition in the marketplace, lenders are being forced to make very attractive offers to lure clients towards their product even after the recent base rate rise.

We always recommend being very selective before deciding on what mortgage best suits your needs. With so many deals on offer it always pays to look at all the options, as an example a long-fixed rate deal may be very prudent with the fear of more rate rise looming.

Need some help?

If you are in need of assistance when choosing your next mortgage call one of our experienced advisers and we will be pleased to assist.