26
Oct
Buyers returning to variable rate mortgages
Homebuyers are opting for variable rate mortgages in increasing
numbers, new research has revealed.
According to figures from a survey conducted by Spicerhaart
Financial Services, 19 per cent of borrowers took out variable rate
mortgages in September.
The previous month, the figure had stood at 13 per cent.
This means that the number of variable rate mortgages being
approved has increased for the third month in a row.
The upward trend follows the Bank of England's decision to hold
interest rates at 5.75 per cent, and is indicative of the
widespread perception that this figure represents a peak.
"The further decrease in demand for fixed-rate products, with
consumers turning instead towards variable mortgages, demonstrates
that borrowers now believe that interest rates have finally
peaked," commented Steve Cox, operations director of
Spicerhaart.
"The proportion of borrowers opting for longer term fixed-rate
mortgages, of between seven to 25 years, remains relatively stable,
but fixed two-year products have seen the biggest drop, suggesting
that borrowers expect an imminent drop in interest rates."
