Those facing high rates on their flexible mortgages are now looking into insurance policies that can provide some measure of protection. As foreclosure becomes a reality due to higher interest rate payments, homeowners are trying to find ways to minimize their risks. For many, getting an insurance policy on their flexible mortgage may be the best option, at least for now. This will help keep payments from skyrocketing upwards, but should not be used in the place of refinancing for a better rate if at all possible, according to experts.
“We are overwhelmed by the early response - from lenders, housebuilders, financial advisors and mortgage brokers,” said Market- Guard chief executive Chris Taylor. “We have established a strong demand for the product, which will sell through financial advisors and brokers in a few weeks’ time.”
“Our research shows that even the slightest increase in Bank of England base rate could tip people over the edge,” added Taylor. “Our product can bring some stability to millions of borrowers either on variable rate mortgages, or nearing the end of fixed rate deals with little hope of getting a new fix because of tightened lending criteria or the prohibitive cost of remortgaging.”
Related reading: Flexible Mortgages
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