Long-term remortgaging could be the solution

The devastating impact of the credit crunch on rates plus rising arrangement fees mean that for many borrowers, longer-term deals are now their best bet.  For example, if you purchased your property within the last year with little or no equity, my recommendations would be to get a good 5 year fixed rate so you avoid paying these ridiculously high arrangement fees every couple of year.  And most importantly you don’t have to worry about falling housing price or negative equity till your next rate change.  Alternative, you could go for a good lifetime tracker as most have no penalties and you can make as much over payments and redeem your mortgage whenever you want.  This is especially handy as economists are predicting that the Bank of England is very likely to reduce rates from 5.75% currently to 5% by the end of 2008.  But be sure to get advice from a good mortgage broker.