This is a tricky time for people applying for mortgages. While some claim interest rates will still go higher in the months to come others are calling the chairman of the Federal Reserve to slash interest rates immediately. This makes choosing a fixed rate compared to a variable rate mortgage a very tough decision. A good idea would be to go with a variable rate for the time being, making sure your bank allows you to remortgage at a later date.

I would like to point out another issue regarding mortgages. In some cases, people reach a situation where they cannot make their monthly payments. For those who have mortgage payment protection this isn’t always a problem but even they can’t put off payments for too long. There’s always the option of a bad credit remortgage in which you close off your current mortgage by taking a new one for the full value of your house. In many cases this is easy to get approved since the value of your house should be higher than your debt due to the portion that has already been paid off.