20 Jan

Variable rate mortgages 'most popular among consumers'

Variable rate mortgages 'most popular among consumers'

Variable rate mortgages were the most popular option for most householders in December, one mortgage broker has revealed.

John Charcol has published figures which show that more than four in every five (80.9 per cent) of mortgages arranged by the company in December last year were variable rate deals.

Ray Boulger, a representative from the organisation, noted that, with base rates of interest so low, tracker products represent the best value for money.

"It will currently take a substantial rise in [the] bank rate for a borrower who takes a tracker to be worse off than one who opts for a fixed rate," Mr Boulger stated.

However, he pointed out that anyone who cannot afford a rise in a tracker rate should opt for a fixed-rate product.

On January 7th, the Monetary Policy Commission decided to hold its rate at 0.5 per cent for the tenth consecutive month since it was reduced to its lowest historical level in March 2009.ADNFCR-1222-ID-19568633-ADNFCR

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