unfavourable to persist
with it, and to replace it with a variable arrangement that
takes account of the change in circumstances. However, lenders
generally tend to protect themselves from such actions by including,
and if necessary invoking, a contractual penalty clause for
early settlement.
So to a large degree
the question of whether to seek a fixed rate remortgage deal
or a variable arrangement depends a great deal upon whether
one prefers to opt for safety first or to take a chance on the
market moving in the right direction. The latter is a better
option for those with the confidence to be speculative in their
approach.
It is unlikely that
fixed rates will vary radically from one reputable provider
to another. However it is the amount payable, the repayment
period and any buy-out clause that will differentiate one from
another, and in these areas it is important that the borrower
is successful in achieving the deal that gives peace of mind.
A comparison site
will be able to provide all the information a potential borrower
needs both on the pros and cons of taking out a fixed rate remortgage
as opposed to any other kind, and also on the various options
available to those who plump for this particular route.
The popularity of
fixed rate mortgages over other more flexible options should
not blind us to the drawbacks of becoming committed to a regular
repayment that makes no allowance for improving economic conditions.