Look abroad for cheaper mortgages
You should only take out a foreign currency mortgage if you are happy with the risk of exposure to foreign-currency fluctuations.
Update: read Should you buy a yen mortgage? for more expert advice on foreign currency mortgages.
Interest rates may seem pretty low at 4%, but this is still more than some canny investors are paying for their mortgage, says David Budworth in The Sunday Times. Take Gervais Williams, a fund manager at Gartmore, who has capitalised on Japan's near-zero interest rates and taken out a mortgage in yen on his London property. Should you do the same? If you are happy with the risk of exposure to foreign-currency fluctuations, yes.
Among the private banks that offer foreign-currency mortgages are Riggs & Co, Fortis Bank, Barclays and Coutts & Co.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Interest rates in both the eurozone and the US are expected to remain at their respective 2% and 1% for this year (the European Central Bank may even cut rates), but bear in mind that, if the currency you choose strengthens against the pound, the value of your debt and repayments would rise.
If you don't want that risk, you may be more interested in broker Charcol's Federal Reserve tracker mortgage, which allows you to follow short-term US rates with a loan in sterling (0800-718191). This product is currently oversubscribed, but there are hopes that it will be reintroduced.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
8 of the best properties for sale with communal gardens
The best properties for sale with access to communal gardens – from an apartment in a listed building opposite London’s Hyde Park, to a wing of a mansion with access to 180 acres of parkland in Henley-upon-Thames
-
The five insurance policies you should have
Some insurance cover will be more important than others. We look at five insurance policies you may need to have to make sure you aren’t caught out in an emergency