Against expectations, house price growth picked up last month the latest house price index has revealed. Specifically, annual growth increased from 2.6% in December to 3.2% in January this year.

Expat UK property owners will be pleased to see these figures, confirming their investment is holding firm and growing through these challenging times.

The figures further revealed that there was no change in monthly growth, with a month-on-month increase of 0.6% recorded in both January and December. As a result, the average house price stood at £211,756 in January, up only slightly from £211,156 in December, but surpassing the previous high of £211,671 recorded in July 2017.

Given that house prices are still increasing, expat UK homeowners might find this a great time to consider re-mortgaging, taking advantage of both high house prices and decently low mortgage rates. It is predicted mortgage interest rates will rise by the end of the year so consideration towards a fixed deal may be a shrewd move.

The future

UK property is still without doubt a very good long-term investment as is has been over the last 50 years or so. There is no reason to suggest this will change in the next 50 years although growth may not be as rapid.

If you compare the performance of UK property over a general bank savings account there is just no comparison, property wins by a very long way.

With the continual shortage of quality property in the UK this situation alone should give expats confidence for what is to come.

Help?

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

Now more than ever expats are looking for ways to reduce their monthly outgoings, one of the biggest expenses most people have every month is the mortgage payment.  As an expat there is a lot of uncertainty at the moment with poor exchange rates and the Brexit situation. It may be a very prudent move to review your current mortgage to establish if it is still the best deal for you, and you are not paying more than you need to.

This will not be the case for everybody, your current deal may well be very good, but it is most certainly worth checking as the wrong deal could be costing you thousands extra every year.

Expats have an excellent choice of mortgage deals currently available, so it’s a very good time to check you are not paying more than you need to.

If you decide to re-mortgage this may an opportune moment to review any expensive loans and credit cards you may have. It is likely the UK property has gained in value giving you a larger equity which could be used to reduce the expensive debt.

Reasons to re-mortgage

• To save money.
• Raise extra cash for a project you have planned.
• Your current deal is ending soon
• You want to pay more to clear the loan earlier and the lender will not permit this.

Reasons not to re-mortgage

• You have a penalty on your current mortgage which makes it prohibitive.
• You have had credit problems since taking out your current mortgage.
• You currently have an advantageous rate which may be fixed.

Can we help?

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

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.