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 even two years ago. In contrast, reverting to the lender’s SVR will generally result in a rate that is higher than the prior fixed rate, and therefore quite a bit higher than the rates currently available.
Many expats fail to review their current deals when they come to an end and this is a very big mistake. The majority of mortgage deals on termination simply revert to the standard variable rate (SVR) and expats then see a huge increase in monthly re-payments.
This can translate into a £3000 hike in annual interest repayments. That’s an extra £250 per month.
Despite this obvious difference in repayments – something that no borrower will surely be able to miss – an estimated 35% of expats are currently sitting on their SVR. The main problem seems to be simply a lack of awareness, with 65% of expat mortgage holders unaware that their lender’s SVR is typically worse value than a fixed mortgage rate, and 24% not knowing what SVR stands for in the first place.
With this knowledge it is vital to review your mortgage on a regular basis I think you will agree?
Ask yourself these questions.
- When did you last review your current mortgage deal?
- Can you afford to waste money each month?
- Would you like to save money?
Can we help?
If you are an expat and want to review your current mortgage please do contact us and let one of our qualified advisers assist you in saving money.