The proportion of mortgage borrowers opting for variable rates has risen by almost 50% in the past three months, according to Legal & General.
Fixed rates remain the most popular type of mortgage, but recent forecasts of base rate cuts have increased the uptake of trackers. Legal & General’s latest mortgage purchase index shows 35% of borrowers opted for a variable interest rate between June and August, compared with 24% in the three months to May 2008. Stephen Smith, director of housing at Legal & General, says fears of further rate hikes by the Bank of England helped boost the popularity of fixed rates in the first half of 2008, but believes borrowers have now adapted to the changing situation. “Trackers will have attracted g...
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