In line with a recent report customers confidence in variable rate mortgage products is on the increase in the UK, following a considerable period of consumers tending to draw back from variable price merchandise, preferring as an alternative to go for extra stable, yet costlier, fastened charge deals. The series of 5 interest rate hikes between August 2006 and July 2007 resulted in many owners making an attempt to remortgage to fastened charge offers as a way to attempt to avoid the effects of further interest rate rises, as well as leading to first time buyers choosing fixed charges to avoid the pitfalls of rising repayments through the first few years of mortgage repayments. Nevertheless, since July of this year the Financial institution of England has kept rates of interest firmly on maintain at 5.75%, making it latest announcement to maintain rates stable simply final week. It is thought that part of the reason for the financial institution’s choice to maintain rates on hold is the doable of effects of the global credit crunch upon the UK’s financial system, resulting in the Bank of England taking a wait and see stance. One more reason for retaining charges on hold for [...]
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