Interest Rate Insurance
insurance, financial services
With many homeowners unable to remortgage or obtain a new fixed rate they risk facing financial difficulties should interest rates rise.
Interest rate insurance is available that is not linked to credit status, LTV or income. It simply provides a safety net to pay out in the event rates rise above a certain level.
It is also useful for borrowers who are paying such a low variable rate it does not make sense to change mortgage product but want the reassurance that they will not be left out of pocket when interest rates start to climb.
Many borrowers are mortgage prisoners and unable to obtain a new rate due to insufficient equity, a poor credit profile, change of earnings or employment status, their lender is no longer lending, stricter criteria or any number of other reasons.