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Remortgaging to get safer deals


Since August interest rates have risen nearly four times. People are sure of another interest rate increase soon, with many people predicting that the Bank of England’s base rate will reach far as 6 per cent by the end of 2007. Consumers can avoid these increases if they remortgage and secure to the best mortgage deals.

Mortgage holders whose discount fixed-rate deals are ending are thinking about remortgaging to a new deal. Most people are applying for a two-year fixed-rate loan.

From Private Finance, Melanie Bien spoke futher; “People are prepared to batten down the hatches for the next 24 months. However, in the long term they are quite optimistic about their financial situation, confident that they will stay in employment and, indeed in some cases, get a pay rise.”

People who last remortgaged two years ago have come across new policies brought forward by lenders in the interim. Many building societies and banks are focusing on affordabiltiy than salary multiples.  Melanie stated clearly that people will still have a chance to borrow as much money as they please, but how much they borrow should be thought about intensively.

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