Fixed or Variable Rate Remortgaging?

Remortgaging is certainly an easy option for the borrowers but it is not the same case for the lenders who have to be very careful when they are lending money for remortgage. Hence, they always keep a close watch on the market because they don’t want to find themselves in deep trouble. Recently we keep hearing the news that markets are going to have double dip recession but so far the markets are steady. However, lenders would never like to take the risk because they have to be in the business.

However, banks and other financial institutions are now becoming more cautious about their moves and therefore they are limiting the options that borrowers have. This means that borrowers have to fulfill all the criteria that lenders ask for only after which the remortgage plan will proceed further. If you are thinking about remortgage with fixed interest rates then you are certainly worried about the future which is why you want your remortgage interest to be at a fixed level. In a fixed rate remortgage plan your interest rates will remain constant even if the bank changes the base rates. However, this is better for those who want to go for long term remortgage loans where they have to keep track of their monthly budget as well. Most lenders offer fixed rate remortgage for around five to ten years.

In variable rate remortgaging borrowers have to keep note of the increasing and decreasing interest rates because the interest rates fluctuate with changes in base rate of the bank. However, the interest rates here are low and attractive and it’s a good option for people who want remortgage plans for short term.

However, no matter whichever option you choose you will need to pay the fees for the entire remortgage process even if you have a broker or you are doing it independently.

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Within the last 12 months, have you (or 2nd applicant) missed loan/mortgage repayments, declared bankruptcy or had a CCJ or IVA? If yes - we can still help.