Fixed Rate Expat Mortgage

Fixed rate expat mortgage and re-mortgages. Expats with a mortgage in the UK should avoid the “wait and see” approach

Expats who avoid reviewing their current mortgage deal could well pay for this error in the long term as interest rates look to be going upwards. Not everybody will benefit from changing their mortgage, but it certainly makes sense to check how your existing deal stands up to the future.

 Fixing for the longer term could prove prudent

Popularity of longer-term deals had waned at the start of the year with expat borrowers opting to fix their mortgage for two years.

Greater competition from lenders keen to lure in borrowers for longer terms and rate rises on five-year deals increasing far less than those of the two-year options has caused a shift.

In June this year demand for five-year fixed-rate re-mortgages went up 40%. Thus representing half the market according to the report. In April they made up just 28% of this market.

It also emerged the number of expat borrowers using a broker to re-mortgage has also hit a record high. So now is the time for a fixed rate expat mortgage.

Lenders are eager to attract longer-term business which has created a competitive landscape for expats. This has ensured five-year average rates have remained relatively flat month-on-month.

Role of the UK broker

More expats are turning to a broker. This is perhaps because choosing a mortgage is one of the biggest challenges they will face whilst residing overseas.

Help required?

If you are an expat looking for a new or re-mortgage, please do get in touch. One of our independent advisers will be happy to assist.