Demand for variable rate mortgages up
Tuesday 18th August 2009
New research from the financial advice website unbiased has shown more homeowners are taking advantage of variable rate mortgages while the Bank of England base rate is so low.
The report, revealed that the amount of people on their lender's standard variable rate has increased some 4% since the beginning of 2009.
27% of new mortgages taken out have provision for rate adjustment or rate ‘tracking’. This come shortly after many experts have recommended people to take a punt on variable rates while the rates are so low and unlikely to rocket.
The increase of those in the lenders SVR bin can be attributed to those who’s fixed rate deals have ended, but are reluctant to remortgage into a fixed rate deal while the SVR represents better value.
Mortgageforce recently released data showing that July saw 37 per cent of all homeowners with the broker opt for a tracker mortgage over a fixed-rate mortgage.