John Charcol recommends variable-rate mortgages

Date:Wednesday 23rd September 2009
Author: Max Freedman

John Charcol has claimed that it is currently advising more and more people to take variable-rate mortgage deals rather than their fixed-rate counterparts.

Figures released by the mortgage broker show that only 41.9 per cent of people took out a fixed-rate mortgage deal in August.

Ray Boulger, a spokesperson for the John Charcol, noted that it has become increasingly common for its advisors to recommend variable-rate deals because the actions of Mervyn King and the other members of the Bank of England's Monetary Policy Committee.

He claimed that Mr King's comments, made following the decision to continue the fiscal policy of quantitative easing, suggest interest rates could be low for up to two or three years.

Mr Boulger said: "The differential between fixed and variable-rate pricing is now such that fixed rates appear to be discounting the rise in interest rates which will eventually happen too much, too quickly."

The Bank of England's base interest rate is currently at its lowest level ever, at 0.5 per cent.