We are now well into the second year of the credit crisis in the UK, and many UK citizens has found their economic position very precarious.
Many people have lost their jobs due to redundancy. This redundancy is sometimes caused by a firm cutting down on the number of people in the work force or by the total closure of the firm itself.
More fortunate individuals are still in the same employment now as before the start of the recession, but their incomes are less than before as some people are now on a shorter working week.
As everything else as regards finances constantly on the move every month, they felt that they owed it to themselves to have one aspect of their outgoings the same month after month.
What this one thing was , was the remortgage or mortgage payment.
This lead to the popularity of the fixed rate remortgage and mortgage.A mortgage is a home loan with which you purchase a property. A remortgage is when a mortgage is moved from one mortgage lender to another either to obtain a better rate of interest or to raise additional funds for a number of purposes.
With a fixed rate remortgage or mortgage the homeowner has the security of knowing exactly how much he will pay for his mortgage each month for a specific number of years which could be anything from one to ten years.
This allowed for some sort of financial certainly in uncertain times.
There was always a difference in monthly repayments between a fixed rate and a variable rate remortgage, and this difference always varied between one lender and another.
Fixed rate remortgages and mortgages always did cost more than variable rates but the cost between the two mortgage products is more distinct now.
This has lead to a slump in the demand for fixed rate mortgages and remortgages, and in September and October about 70% of mortgage applications are now for variable rates as the fixed rates are now considered as too expensive.
Want to find out more about mortgages, then visit Champion Finance’s site on how to choose the best mortgage for your needs.
categories: refinancing,real estate,home loans,remortgages,secured loans,mortgages,home improvements