Liquid Expat Mortgages Says Longer Term Fixed-Rate Re-Mortgages "Wise Move" for British Expats Who Can Move Quickly

Manchester, United Kingdom, February 02, 2011 --(PR.com)-- For people looking for expat mortgages or remortgages on UK property this could be very welcome news. It may also be especially relevant now that certain lenders have recently begun loading existing customers’ buy-to-let fixed rate mortgage rates for UK properties by up to 1.5% pa once their fixed-rate periods expire, for example: as explained in this document from Nationwide http://www.nationwide.co.uk/pdf/mortgages/M628_mortgage_fees.pdf.

This can make it uneconomic to rent out the property in question if it means that the mortgage repayments become greater than the rental income being received.

UK Base Rate rises loom

Add to this the fact that, following January’s announcement that UK inflation is currently running at 3.7% one option that the Bank of England has to lower this figure would be to raise the base rate. If this happens, mortgage rate rises could soon follow. In The Guardian’s Money section on 22nd January 2011 Rupert Jones reported that the money markets “are now pricing in three 0.25% Bank of England rate rises by the end of the year”.

In fact, according to statement made in an interview with the Daily Telegraph on 22nd December 2010 by Paul Fisher in his capacity as executive director of markets and member of the Bank’s Monetary Policy Committee, conceded that the base rate rise could eventually be “normalised” at a rate as high as 5%.

Mr Fisher claimed that in order to “normalise” rates it could be raised ten-fold in 2011 to 5%. He went on to say that this rise was likely to happen early in 2011. If it does, it will mean that people would find that higher UK mortgage rates will mean they’re spending more of their disposable income on debt interest than they have in 20 years.

Another member of the Bank of England’s Monetary Policy Committee, Andrew Sentance, was quoted in the Daily Telegraph on 27th November 2010 as saying the reason for any possible base rate rise could be concern about inflation rate.

But even though it may all seem like doom and gloom, there is a ray of hope and it is being provided by www.liquidexpatmortgages.com- the world’s leading service provider of expat mortgages for UK property.

Liquid’s Business Development Director, Stuart Marshall, takes up the story:

“Liquid has received a great deal of anecdotal and actual evidence that a number of lenders are tightening the screw on expats with UK mortgages. The economic outlook can only mean that the situation is set to get worse.

5 Year Fixed rates Re-mortgages from just 4.05% currently available

“But looking on the bright side, some of the more enlightened lenders whose products Liquid is able to access are introducing expat UK mortgages which are more than competitive. For example one of the big lenders is currently offering a fixed rate mortgage of 4.05% for a 5 year period. Another is offering an even lower tracker rate of 1.99% above UK base rate for 2 years. Generally speaking, the lower loan to value re-mortgage attracts the more competitive rate.

“Alternatively, clients can obtain a 5 year fixed rate mortgage for a Buy to Let UK purchase at 5.49% at 80% loan to value.”“Alternatively, clients can obtain a 5 year fixed rate mortgage for a Buy to Let UK purchase at 5.49% at 80% loan to value.”

Stuart Marshall concludes: “So great deals are out there and we are currently advising many of our clients that this could be a wise move to re-mortgage. But we’re also recommending fast action because, if the Bank of England rate does rise, there’s no telling how quickly lenders’ rates for expat mortgages will follow suit.”

To find out more about the mortgage deals available for expats through Liquid, just visit the www.liquidexpatmortgages.com or call them on +44 (0) 161 633 5009 today.

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