There was a surge in re-mortgage activity in August, as expat borrowers look to lock into cheap deals ahead of an expected interest rate rise.

Since the financial crisis in 2008 mortgage rates have steadily fallen. The Bank of England cut interest rates in August 2016 from 0.50% to 0.25% – the lowest on record and the first interest rate cut since 2009 when the financial crisis was at its peak. This led to a number of lenders slashing their rates and competition in the mortgage market heating up.

However, with the Bank of England hinting that it could raise interest rates for the first time in a decade in order to curb inflation, economists are predicting a hike could come as soon as November this year. Record low mortgage rates continue to sustain market activity, but given even the most dovish members of the Bank of England’s Monetary Policy Committee are now adding to the calls for an interest rate rise, this picture could very quickly change.

A “wait and see” approach is best avoided for existing expat UK homeowners considering re-mortgaging.

The number of expat mortgages approved also went up in August for the second month in a row, suggesting the market is picking up steam following the Brexit vote.

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage but it certainly makes sense to check how your existing deal stands up to the future.

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

House prices are 3.4% higher than they were a year ago, according to the latest figures just released. The annual growth rate in the three months to August was higher than the 2.7% annual growth recorded in July.

The average UK house price is now £222,000 after property values climbed 1.3% between July and August. But house price growth is down from its peak of 10% recorded in March 2016. When you consider all that has happened in the last two years it is little wonder. For the expat investor, the reduced growth still represents good value as general savings accounts offer very little return on your money.

Prices were boosted last year amid a flurry of transactions ahead of the introduction of new stamp duty and tax changes to buy-to-let and second homes. While unemployment is at a 42-year low, experts say growth is being held back by low wage growth and rising inflation, which is putting pressure on household finances.

Expats are still flocking to buy in the UK with mortgage transaction numbers at their highest level since March 2016.

The lack of supply of homes for sale has constrained market activity and helped maintain prices. Stock levels on estate agents’ books are near an all-time low and new instructions have fallen for the 17th month in a row. Experts say house prices should continue to be supported by low mortgage rates and a continuing shortage of properties over the coming months. However, some experts are warning interest rates could start to increase at the turn of the year.

Expat mortgages.

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 help.

The UK housing market is shrugging off concerns in the wider economy following the Brexit vote, compounding problems for many first-time buyers still wrestling with the strongest year-on-year price rises in the market.

There are more expat buyers and sellers in the wider market compared with the period around the referendum a year ago, with the number of sales agreed up by 6% in June 2017 compared with June 2016.

Expat prospective buyers are seeing a lot of sold boards on properties they would like to buy with over 35% of estate agents property stock now being sold subject to contract.

So, a year on from the shock referendum result and subsequent dent in activity levels, the fundamentals remain strong and the future looks very positive indeed.

Low unemployment, low interest rates, strong demand and historic undersupply of homes are mitigating any wobbles in confidence. As a result, nearly half the properties on the market have sold signs on the boards.

The monthly survey, which is calculated on asking prices rather than completed transactions, comes at a time of year when the property market is typically quiet, as expat buyers and sellers take a break from the spring selling season and households concentrate more on holidays than house buying.

Data shows that the national average asking price for people buying their first home has dropped by 1.7% since last month to £196,000, but that figure is still 3.8% higher than a year ago, while the expat first-time buyer sector is the highest riser in the market during 2017.

Can we assist?

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

Don’t waste that hard-earnt money As you know, mortgage rates have been edging down for some time now, reaching new lows again and again. What this means is that those borrowers who are coming off the end of a fixed term now will generally be able to find much better rates than were on offer […]

Expats still suffering bad returns Expats living overseas are still suffering low returns on their longer-term cash investments. So, what does the future hold?