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.

This financial year has seen more new expat mortgage business being conducted than this time last year and applications are still rising as the year progresses.

Mortgage rates are at a record low fuelling the increase in business being done in all sectors of the mortgage market. Even with the recent base rate rise there are still excellent deals to be had.

September and October has seen a record number of re-mortgages as clients look to release equity built up over the years within their properties. The released equity is being used for assorted reasons including expensive debt consolidation. Expats are also re-mortgaging to fix the rate of their loan over a longer term as more base rate increases are expected in the new year.

Confidence is sky high within the expat community at present especially with those who own a property in the UK. This is due to the ever-increasing property prices.

If you are considering taking out a mortgage or re-mortgaging, please call us and one of our advisers will be happy to assist.

UK property prices increasing

According to the latest figures house prices are on the rise again, September and October saw good 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.

So, at present the outlook for 2018 is very positive indeed, the signs are this will continue for the foreseeable future.

Can we help?

As expat mortgage specialists we offer a much-valued service to our client so please make contact if we can assist you.

More than a fifth of expat mortgage payers won’t shift to a new lender, no matter how good a new deal they are offered, according to research. Mortgage experts say staying with your existing mortgage provider could be the equivalent of turning down a pay rise.

According to the new data, more than a third of expat borrowers haven’t changed their mortgage in the past five years, despite better deals on offer. This means that homeowners could be unnecessarily overpaying by thousands of pounds a year. Just ask yourself, when was the last time you reviewed your mortgage?

Most at risk of overpaying are expat homeowners whose deals have ended and have moved to their provider’s standard variable rate (SVR).

Now is the time to consider re-mortgaging as rates are likely to rise in the very near future. Borrowers on a SVR could save the equivalent of a monthly pay rise or an annual family holiday.

Mortgage rates plummeted again this year but this is about to end if you believe what Mr Carney is saying. Rates could start to rise as early as next month so if you are on a SVR mortgage get it reviewed urgently.

Could you give yourself the equivalent of a hefty pay rise by re-mortgaging?

The simple answer to this question is YES! If you have a current deal with no penalties to change It is strongly advised you to contact us to see what is available.

Your mortgage is likely your biggest financial obligation; don’t let it be your biggest blind spot.

Can we assist?

If you would like to review your current mortgage please make contact and one of our qualified advisers will be happy to explain your options.