Variable rates ‘take larger market share’

Variable rate mortgages more than doubled their market share in July, a mortgage brokerage has said.

John Charcol revealed that while 17 per cent of its clients took a tracker or discount rate in June, nearly 35 per cent did last month.

It amounted to a shift away from an increase in fixed rates that saw such deals apply in 84 per cent of cases in the four months to June, noted spokesman Ray Boulger.

This was partly down to the company advising customers that variable deals offered the best prospects, he stated, adding: “A modest increase in the availability of tracker and discount rates above 75 per cent LTV also facilitated the move away from fixed rates.”

Many of those with interest-only mortgages will suffer badly from negative equity unless they change to repayment deals, David Hollingworth of broker London & Country told the Daily Mail this week.

He advised anyone unable to do so to “either overpay on your current deal or start regular saving”.

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