Expats on standard variable rate (SVR) mortgages could potentially halve their monthly payments by switching to a fixed rate mortgage, according to the latest research.
Research shows the monthly cost of an average expat standard variable rate mortgage for a £150,000 home loan rose from £720 in September to £735 in October. This follows the increase in the bank base rate from 0.5% to 0.75% in August.
In January, the average monthly payment stood at £702 according to the calculations. This means expats on variable rate mortgages are typically paying £33 more per month for their mortgage than they were at the start of the year.
The research found that expat switching from a variable rate to a fixed rate mortgage could save themselves between £200 and £400 per month.
Obviously the increase in bank base rates has affected standard variable rates the most but it does appear the situation is more mixed amongst fixed rate loans. Whilst some have crept up others such as the more popular fixed rate 2-year loans have fallen back slightly since last month.
Re-mortgaging figures for expats look very healthy at present and this trend should continue if more review their current deals. The good news is there are a number of attractive fixed rate mortgages on offer currently for expats.
If you would like to review your current expat mortgage please do make contact and one of our expert advisers will be happy to guide you.