Survey shows borrowers unsure of right remortgage
A new survey has indicated that four out of ten people would be
unsure what type of remortgage to take if they had to choose one
The study by Abbey established that 41 per cent of homeowners last
month would be unsure whether to take a tracker mortgage or a
fixed-rate deal, compared with 30 per cent in June.
Abbey has suggested that this situation has occurred because of the
uncertainty over the direction the wider economy will take, with
the Bank of England's monetary policy committee (MPC) facing the
twin threats of inflation rising too much if interest rates are too
low and the economy going into recession if they are kept too
Director of Abbey Mortgages Phil Cliff said: "The current
uncertainty surrounding base rate decisions and the general
uncertainties on the market at the moment are clearly feeding
through into consumers views on mortgages."
Predicting that the base rate will be held when the MPC meets
tomorrow, Paul Dales, UK economist at Capital Economics, said that
such a decision is "the easiest thing to do" at present.