With the Bank of England’s Monetary Policy Committee set to raise interest rates again on the 15th September, UK expat and foreign national investors are again forced to consider re-mortgaging.
What’s Happening with Interest Rates?
With inflation surpassing 10% in July, the rise in the cost of living is surpassing predictions by the Bank of England and economists. Because of this, it’s likely that the Monetary Policy Committee will raise interest rates again on the 15th September, with many commentators predicting a 0.5% rise rather than a 0.25% rise. This type of activity has been commonplace since the Bank of England began raising interest rates in a bid to manage inflation. However, numerous factors including the conflict in Ukraine and supply chain disruption mean that inflation is remaining high. With inflation so far above where it is supposed to be, it is likely that the interest rate rise predicted on 15th September will not be the last either.
Should UK Expat and Foreign National Investors Re-Mortgage?
‘We’re advising many existing UK expat and foreign national investors who are either approaching the end of their fixed-rate term or on a standard variable rate mortgage to re-mortgage as soon as possible to avoid further rate rises’ says Stuart Marshall. ‘For those approaching the end of their term, we recommend talking to an expert UK expat and foreign national mortgage broker as soon as possible. With such frequent interest rate hikes, time really is money at the moment. Lenders are withdrawing deals all the time so an expert UK expat or foreign national mortgage broker can help to lock in a deal and move as quickly as possible so that the deal is not withdrawn from the marketplace.’
‘For those on a standard variable rate, re-mortgaging is even more advisable as every interest rate rise will eat into profits. In planning an investment, certainty and security are two of the most important things. Knowing exactly how much it costs to manage an investment each month will help UK expat and foreign national investors budget, set rent correctly and create a long-term financial plan for their investment. Constantly fluctuating costs caused by rising interest rates are detrimental to this planning and can prove costly across the term of an investment.’
How to Re-Mortgage as a UK Expat or Foreign National?
In order to re-mortgage effectively, it’s important to first establish the purpose of re-mortgaging. While most UK expat and foreign national investors will re-mortgage to avoid higher rates or to better devise a stable financial plan for their investment, there are also other ways to utilise a UK expat or foreign national mortgage. Some UK expat and foreign national investors might take the opportunity to use their re-mortgage to fund further property purchases and build a larger portfolio. This will likely be a better strategy for more experienced investors, those who have made strong capital gains or for those who have a lower loan to value, as negotiating a preferential deal will be made easier as they are in a stronger bargaining position.
‘We have also seen re-mortgaging increasingly utilised as a tool with which to conduct environmental renovations’ adds Stuart Marshall. ‘As of 2025, properties with an EPC rating below a C will not be able to accept new tenants and, as of 2028, existing tenants on these properties will no longer be allowed to occupy them. So, many UK expat and foreign national landlords are faced with no other option than renovating energy inefficient properties. Re-mortgaging is an excellent way to do this as UK expat and foreign national investors can use the equity in their property to raise capital with which to conduct renovations. For those re-mortgaging in part for this purpose, they will also be able to benefit from the current VAT cut on energy saving devices like solar panels, heat pumps, insulation, and wind turbines. This amounts to a real life saving of around £1000 for those installing solar panels, with tenants saving £300 a year in energy bills – an enticing attribute in a competitive marketplace.’
After establishing how best to utilise a UK expat or foreign national re-mortgage, it’s time to look for a deal. ‘The best advice we can offer when looking for a deal is to act as quickly as possible’ says Stuart Marshall. ‘The typical mortgage deal is only available for 17 days before lenders take it off the market. With UK expat and foreign national borrowers having to jump over more hurdles than domestic lenders, this timeframe can feel dramatically shorter. With this in mind, one of the best tools available to UK expat and foreign national borrowers is an expert UK expat or foreign national mortgage broker. For busy UK expat and foreign national investors, a broker can smooth the process, dealing with many of the commonly encountered issues and making sure that the process moves as quickly as possible. Further, a broker can help to get the best deal as they have a great knowledge of the existing offers, which can make all the difference.’
‘In short, a fixed-rate mortgage will offer some financial surety to UK expat and foreign national investors, allowing them to better manage their investment and build up equity in their property over the fixed-rate term. However, if forced to re-mortgage by the current climate, some savvy investors might try to capitalise on the situation and improve the quality or size of their investment. Talking to an expert UK expat or foreign national mortgage broker will help at every stage of this process – from deciding the right use of a re-mortgage, finding the right deal, and acting as quickly as possible to make sure the deal is locked in!’
Liquid Expat Mortgages
Ground Floor, 3 Richmond Terrace,
Phone: 0161 871 1216
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