Since the advent of the credit crunch the UK population has been in an extremely unsettled financial situation.
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.
Obviously the whole of the UK work force has not suffered in this way, but even some people still in work are earning less now due to such things as working three or four days a week now instead of the usual five.
With all aspects of economic life at home so constantly changing many house holds were anxious to keep one thing in life the same every month.
This one constant was the remortgage or mortgage payment that had to be paid each month.
More and more people opted for a fixed rate mortgage or remortgage whether they wanted to remortgage to move their existing mortgage from their current lender to another or whether they wanted additional funds via a remortgage.
With a fixed rate remortgage or mortgage the payment will not change over the period of how long the fixed rate is set. This was in general from one year to ten years. However most people opted for a four to five fixed repayment period .
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.
As a result of this the popularity of the fixed rate mortgage or remortgage has waned and the demand for variable remortgages and mortgages has increased to such an extent that about seven out of ten people in the past two months have opted for a variable rate.
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