21
Jan
Variable rate mortgages 'will continue to be relatively competitive
in 2010'
Variable rate mortgages will remain a good option for many buyers
this year, one industry expert has claimed.
Paula John, editor of Your Mortgage, stated that, even though worse
than expected inflation figures have sparked talk of interest rates
rising before the end of the year, she does not believe it will
impact too heavily on variable rate products.
"I don't think interest rates are going to go above 1.5 per cent
this year and that means that variable rate mortgages will still
remain relatively competitive," Ms John explained.
She added that until there is a substantial rise in the Bank of
England base rate, which currently stands at 0.5 per cent, the
number of people opting for standard variable rate products is
likely to remain stable.
On January 20th, John Charcol reported that 80.9 per cent of
mortgages taken out in December 2009 were variable rate
deals.
The company noted that this is the highest percentage of this kind
of loan since October 2008.