UK Expatriate Mortgage Market Shows Signs of a Thaw as House Prices Rise, reports Offshoreonline.org

Following the near total withdrawal of the major lenders from the expatriate mortgage market late last year, UK regulated specialist broker Offshoreonline.ORG has detected a noticeable thawing in the market and an increase in the range and quality of products available.
Tim Harvey, Offshoreonline.org’s managing director comments, "Late last year, there were virtually no lenders in the market and average deposits needed were 35% of the purchase price. Lenders simply withdrew from the market or just looked at applications on a case by case basis."
Now, though, the banks and specialist lenders are beginning to dip their toes back into the water and 80% loans are available once again. Interest rates are competitive too, with tracker loans available at rates from 2.69% over UK Base rate, giving a headline figure of just 3.19%.
For those buyers willing or able to stump up a larger deposit, interest rates as low as 2.39% over UK Base Rate are available where the loan represents 50% of the value of the property or less. For buyers with a 40% deposit, interest rates are still a very attractive 2.59% over UK Base.
Buyers looking to budget outgoings will be pleased to see the return of interest only loans too. Generally, these are available with similar deposit options but at an interest rate of 0.20% above that charged for capital and interest repayment loans.
Added to this are reports from the Halifax House Price index of a 2.6% average price rise in May. Whilst it is too early to call the bottom of the market, the fact that prices might be stabilising should bring more supply onto the market and this, together with the improved availability of funding for expatriates means the summer could present buying opportunities.
Tim Harvey ends, "Conditions are still difficult and lenders are still taking their time picking and choosing the applications they like the look of. Some are specifying minimum salary levels of £50,000, whilst most are setting the minimum loan amount at £100,000. That said, interest rates are once again competitive and we are seeing a definite increase in interest amongst buyers eager to take advantage of sterling’s weakness which has effectively made prices even cheaper for many overseas buyers."
For more information of mortgages available, visit www.offshoreonline.org or call + 44 (0)1364 72393