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

Since the advent of the credit crunch the UK population has been in an extremely unsettled financial situation.

Many people have lost their jobs due to redundancy. This redundancy is sometimes caused by a firm cutting down on the number of people in the work force or by the total closure of the firm itself.

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.

As everything else as regards finances constantly on the move every month, they felt that they owed it to themselves to have one aspect of their outgoings the same month after month.

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

This lead to the popularity of the fixed rate remortgage and mortgage.A mortgage is a home loan with which you purchase a property. A remortgage is when a mortgage is moved from one mortgage lender to another either to obtain a better rate of interest or to raise additional funds for a number of purposes.

With a fixed rate remortgage or mortgage the homeowner has the security of knowing exactly how much he will pay for his mortgage each month for a specific number of years which could be anything from one to ten years.

This allowed for some sort of financial certainly in uncertain times.

Now however some remortgage and mortgage lenders have reduced the interest rates for their variable products while at the same time keeping their fixed rates at the same rate as before.

Fixed rate mortgages were always more expensive that variable rates, but now the difference is greater than before.

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.