Variable mortgage rates offer 'better value'

Variable mortgage rates are still the best option for the majority of people, according to an independent advisor.

John Charcol said that the release of figures showing a reduction in inflation to 4.00 per cent and a fall in retail sales of 1.9 per cent from last year confirm that now is not the time to opt for fixed mortgage rates.

Ray Boulger from the firm said that what this means for the public is that the base rate is unlikely to rise above 0.5 per cent in the immediate future, ensuring that variable rates are likely to stay as the cheaper option for homeowners.

"In our opinion for borrowers not needing the security of a fixed rate, tracker and discount rate mortgages continue to offer better value," he explained.

Mr Boulger added that the number of people choosing a fixed rate mortgage had fallen from 56 per cent of clients in February, to 50 per cent in March.
 

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-04-13 13:01:12 © Moneyextra.com