Banks cutting rates on variable mortgages

Date:Wednesday 20th January 2010
Author: Suzanna Kavka

Variable mortgage rates are increasingly being cut as they prove to be one of the most popular forms of mortgage available at present, it has been stated.

Both Woolwich and Halifax have reduced the rate of their tracker products recently, which is helping to boost the numbers opting for this form of loan, the BBC has reported.

It was estimated by John Charcol that last month 81 per cent of mortgages came with a variable rate.

With the Bank of England base rate remaining at 0.5 per cent since March of last year, with little likelihood of it increasing in the near future, this has meant homeowners have been paying off a low amount of interest on their monthly bill.

As a result, there have been fewer repossessions as more people can meet their payments.

This news follows reports from that the number of products on the market has topped 2,500 for the first time in almost a year.