Risky ways to save on your mortgage

With interest rates likely to rise again, homeowners will be looking for ways to save money on their mortgages. A foreign currency is one option, but a very risky one.

Update: read Should you buy a yen mortgage? for more expert advice on yen and foreign currency mortgages.

Interest rates aren't likely to stay at 4.75% for long now that inflation has unexpectedly jumped up again. The consumer price index rose to 2.5% in August from 2.4% in July, well ahead of the Bank of England's annual target of 2%. But while any rise is likely to hit many mortgage holders on variable rates quite severely, it doesn't necessarily mean that you can't continue to find low rates. Foreign-currency mortgages have been available on the UK market for some time, and although quite risky in comparison to their domestic counterparts, taking one out could save you a bucket-load of cash. The only problem is that you'll have to be filthy rich first.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.