As consumers seek ways to avoid getting surprised by higher payments, many are looking into mortgage United Kingdom insurance. This may help protect a homeowner from a sudden rise in rates which can make a huge difference, especially for those on a fixed income. Right now, mortgage United Kingdom insurance is very popular, but it may not be the best solution, especially for those who already are dealing with a high interest fixed rate mortgage United Kingdom loan. In this situation, advice is necessary for most consumers in order to make the right decision.
Andrew Montlake, a director at mortgage brokers Cobalt Capital, said: “By taking out this [mortgage] insurance you are effectively adding another half a percent to your mortgage rate to insure against a 1.25% rise. You will almost always be better off remortgaging, but if you are stuck on an standard variable rate then it is a straight call as to whether you want the security and are prepared to pay for it.”
Francis Ghiloni, of www.mform.co.uk, said: “Lenders are becoming more cautious about interest-only mortgages because of worries about house prices and our experience is that increasingly borrowers are becoming more cautious too.”
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