Variable mortgage rates stagnate - moneyfacts.co.uk

Variable mortgage rates stagnate – moneyfacts.co.uk

Variable mortgage rates have continuously seen a decrease in demand and popularity, despite record low interest rates. Along with this decrease in demand and popularity, a lack of competition also exists, as companies have seen no need to explore these mortgages, with such little demand. Mainly, this lack of interest and competition is due to the fact that most consumers favor fixed mortgage rates, as they are seen as more of a safe move for such a long term investment.

Key Takeaways:

Variable mortgages are on the decline and have hit a low
Fixed interest mortgage rates are more desirable have great rates
People do not want the possibility of a unaffordable mortgage with variable point escalation

“Not only are fixed mortgage rates at record lows, but these deals offer repayment security for the duration of the term, offering a great way to plan your budget and ensure you won’t get any unexpected surprises, no matter what happens to rates or the market at large for the foreseeable future.”