Consumers increasingly switching to variable rate mortgages
28 August 2009
After months of fixed-rate mortgages dominating the UK market, variable-rate policies are making a comeback.
According to the latest John Charcol figures 34.7 per cent of mortgages purchased in the month of July were variable rate deals, more than double that of the previous month.
Ray Boulger, from the mortgage advice company, said: "We have seen a further dramatic fall in the take-up of fixed-rate mortgages this month and it looks almost certain that fixed rates will take less than half of the market in August, both by case number and volume.
"This reflects the changing views on how long interest rates will stay low and in particular the actions of the Bank of England this month in the major extension of its Quantitative Easing programme."
According to the data, 47 per cent of mortgage business during the month was on remortgages.
Customers who are looking for a mortgage or remortgage policy could save time and money by comparing a number of policies before making a decision.
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