Expat re-mortgage loan approvals hit a nine-year high in November, just as borrowers were experiencing the first base rate rise in over a decade, Bank of England figures show.
The Bank of England base rate was increased from 0.25% to 0.5% in early November – the first increase in more than 10 years.
That month some 3,500 expat re-mortgage loans were approved, marking the highest figure since October 2008, the latest figures revealed.
The report also showed that expats borrowing using secured loans and overdrafts fell back to a near two-year low in the run-up to Christmas, prompting suggestions that rising interest rates may have had a “significant psychological impact” on some expat borrowers.
The gap between the cheapest and most expensive mortgages mean you could save an astonishing £3,000 every year by moving if you’re on an adverse deal.
It’s estimated that over 18,000 expats are languishing on their lender’s standard variable rate (SVR) and if you are one them it would be a wise move to review your mortgage NOW.
How to save
- Start investigating into switching your mortgage at least three months before your initial term ends –When the initial term of a mortgage ends, lenders transfer customers onto their Standard Variable Rate (SVR).
- Get professional help to secure the best possible deal to meet your ongoing needs.
- Overpay while interest rates are low –Interest rates may have crept up recently but they’re still historically low. If you’re in a position where you can afford to overpay on your mortgage, this is as good as investing money long term as it can reduce your overall debt.
Can we help?
If you are looking for a new or re-mortgage please make contact and one of our advisers will be happy to assist.