Interest rate rise protection on mortgages
The number of homeowners which are currently on variable rate mortgages, have been offered insurance to protect themselves against further increases on interest rates.
The new MarketGuard interest rate insurance policy offers any increases made by the Bank of England base rate.
If the interest rate grows beyond a set point, the insurance protection team will help meet the higher mortgage repayments.
If one decides to cancel the insurance policy at some stage during the two years of the agreement, 30 per cent of the total cost of the policy is held back as a fee.
Chris Taylor, chief executive of Marketguard commented: "However, this product is aimed at anyone who for whatever reason does not want to take a fixed rate.
"There are a host of reasons now, often based on cost, that people are turning away or are being turned away from fixed deals."
Since the early 1990’s the base rate took the upward trend nearly19 times, an average of less than two increases a year, however Marketguard predicts at least three further increases by 2009.
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