Since the advent of the credit crunch the UK population has been in an extremely unsettled financial situation.
Redundancies have been the main reason for this economic chaos. Many firms have stream lined their work force to cut down on over heads in the hope of emerging from the recession with their doors still open.
Other individuals have not suffered quite as drastically, but have nevertheless had a cut in wages because their working week has been cut or paid over time has been done away with.
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 payment will not change over the period of how long the fixed rate is set. This was in general from one year to ten years. However most people opted for a four to five fixed repayment period .
This allowed for some sort of financial certainly in uncertain times.
Variable rate remortgages and mortgages have had their rates reduced by certain mortgage lenders, and this has not been the case with their fixed rate cousins.
Fixed rate mortgages were always more expensive that variable rates, but now the difference is greater than before.
This has caused a huge fall in requests for fixed rates, as they are simply now considered too expensive, and in the course of the last two months two thirds of those seeking a remortgage or mortgage are choosing a variable rate.
Learn more about remortgages. Stop by Champion Finance’s site where you can find out all about a remortgage and what it can do for you.
