UK borrowers are seeking greater financial stability when looking to reassess their monthly outgoings, it has emerged.

Research conducted by Abbey finds that many Britons prioritise knowing what their monthly repayments will be when renewing their mortgage.

But for those who are obtaining money for reasons other than house purchase, a homeowner loan could be an alternative means of fixing the amount which must be repaid each month.

Nici Audhlam-Gardiner, head of mortgages at Abbey, comments: "For most of us our mortgage is the biggest financial commitment we make so it's understandable that we want to know just how much we're going to have to fork out each month."

Nearly half (49 per cent) of respondents to the study predict that interest rates will rise still further in the next two years.

This could cause many homeowners to see their repayments rise again if they enter into a two-year fixed-rate deal now.

But with a homeowner loan, interest rates could be fixed for the full repayment period, offering peace of mind to the borrower.

The current base rate of interest is 5.75 per cent, although in the most recent vote two members of the Bank of England's monetary policy committee favoured a 0.25 per cent reduction.ADNFCR-1287-ID-18375842-ADNFCR

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