Increased uptake of variable-rate mortgages
There has been an increase in the number of people taking out variable-rate mortgages, according to new research.
Figures from Spricerhaart suggest that variable mortgages accounted for 21 per cent of the market in September - up from 19 per cent in August.
Meanwhile, tracker mortgages are also gaining in popularity with 19 per cent of homeowners opting for these products last month.
Director of Spicerhaart Financial Services Steve Cox said that the shift way from fixed-rate mortgages for professionals shows growing confidence in the market.
“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,” he explained.
“Secure in their financial security, people are hedging their bets and opting for variable products rather than locking themselves into the current high rates,” the expert added.
The research from Spicerhaart follows the Bank of England’s decision to keep the base rate of interest at 5.75 per cent for the third month running.
