There Are Now More Enquiries For Variable Mortgages And Remortgages Than For Fixed Rate Products.

The credit crunch started almost two and a half years ago, and this has caused many people on Great Britain financial turmoil.

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.

With finances so badly affected people really wanted one aspect of their outgoings to remain constant each month.

This one constant was the remortgage or mortgage payment that had to be paid each month.

The popularity of fixed rate mortgages and remortgages soared. This was true whether it was a remortgage which a homeowner can use to get a lower rate of interest or if it is used to obtain more money. A mortgage releases funds to buy a property.

A fixed rate mortgage or remortgage means that the mortgage payment is fixed at the same rate for a set period. There were one year fixed mortgage and remortgage rates, two years fixed, and probably the most popular was the four and five year fixed rates.

This was some assurance to homeowners opting for a fixed rate mortgage, that at least this one financial out going would stay the same.

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 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.

Want to find out more about mortgages, then visit Champion Finance’s site on how to choose the best mortgage for your needs.