UK housing market weakens favouring expat buyers
UK housing market favours expat buyers following a fall in expat mortgage interest rates and a weakened housing market.
Costs of mortgages in the UK
As the threat of an increase to the UK Base Rate and with it expat buy to let mortgage rates recedes, Offshoreonline reports several lenders have begun to cut expat mortgage rates and reduce bank administration fees.Variable rate loans are available for expat buy to let purchases from 2.89 per cent from experienced lenders in the market, whilst two year fixed rates start at 3.19 per cent and five year fixed rate at 4.19 per cent.Expat buyers remain concerned about possible mortgage interest rate rises, but as Stephenson points out, these may end up being far more modest when the UK Base Rate does eventually increase.Related stories:
- Cambridge the new £1 million home hotspot
- England facing homes shortage on ‘epic scale’
- UK housing market roundup and predictions for 2018
For more education and schools news, visit Residential Property
Mr Stephenson added, “The period since the financial crisis has been one of abnormally low UK Base Rates, but equally unsustainably high bank margins, as banks have rebuilt their balance sheets.“Before the 2008 financial crisis, many mortgage providers would typically aim for a margin of anything from 0.75 per cent to 1.25 over UK Base when setting mortgage interest rates, but today, many lenders are still achieving nearly three times this level of mark up on loans.“As and when UK Base rates do rise therefore, lenders will have the ability to trim margins, so the impact on borrowers can be softened.”Offshoreonline is a UK based specialist expatriate and international broker offering advice on UK, French, Italian, Portuguese and Spanish mortgages.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory
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