Variable rates proving popular - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Variable rates proving popular

Variable rates proving popular

Category: Mortgages

Updated: 25/09/2009
First Published: 25/09/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Variable rate mortgages continue to be the borrower's product of choice, as fixed rates stubbornly refuse to drop significantly.

According to the latest research from John Charcol, just two in five borrowers chose a fixed rate mortgage in August, the lowest number since December last year.

Meanwhile, almost 10% of clients who opted for a variable rate chose a discount off standard variable rate (SVR) rather than a tracker.

Explaining the current attraction of the variable rate mortgage, Ray Boulger of John Charcol said: "Following the Monetary Policy Committee's decision in August to extend the quantitative easing programme, plus subsequent comments from the Governor of the Bank of England Mervyn King, it increasingly looks as if interest rates will remain low for at least two to three years on the back of a very slow economic recovery."

"Taking this into account, we have continued to advise an increasing proportion of our clients to take a variable rate mortgage, as the differential between fixed and variable rate pricing is now such that fixed rates appear to be discounting too much and too quickly the rise in interest rates which will eventually happen."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.
 
Close