John Charcol Confirms Popularity of Variable Home Loan Deals

Fri, 22 Jan 2010

Mortgage broker John Charcol has confirmed that variable rate mortgage deals continue to be hugely popular among borrowers . Since the Bank of England cut interest rates to the record low level of 0.5 per cent in March 2009, variable rate mortgages have become extremely popular, with many customers seeing repayments on their home loans slashed to a fraction of what they were before.

John Charcol revealed that 81 per cent of the home loans it arranged in December were variable rate deals, with many experts forecasting that it could be a while before the Bank of England ups the base interest rate.

Fixed rate loan deals, as well as remortgages, have suffered as a result, with most consumers opting to remain on their existing variable deals. Most of these tracker mortgages carry interest rates of around 1.5 per cent less than fixed rate deals, meaning it could take a few raises yet before consumers consider switching to fixed rate deals.

There have been signs of a recovery in the housing market in recent times, with home loan approvals reaching their highest level in over 18 months during November.
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