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Life insurance a necessity when remortgaging

Date: Wed, 10 Aug 2005

Life insurance should be regarded as vital when opting to remortgage the family home.

Remortgaging can be the right choice for a number of homeowners and could allow for savings of up to £1,800, according to Bradford & Bingley. However, people are reminded to make sure their budget for life insurance premium when making the decision.

Recent figures from the Council of Mortgage Lenders show that remortgage level rates are remaining low, despite many borrowers nearing the end of two-year fixed rate offers. The slow uptake in remortgage is largely believed to be due to homeowners reluctance to swap lender.

"Given the popularity of remortgaging over recent years and the fact many homeowners are increasingly rate aware, I would have expected remortgage levels to have been higher this year as hundreds of thousands of borrowers come to the end of their cheap fixed rates," said mortgage development manager for Bradford & Bingley, Duncan Pownall.

He added: "Borrower apathy and unawareness remain crucial reasons why remortgaging is slowing."


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Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.