Variable rates are "lion's share" of mortgage applications

Date:Wednesday 10th March 2010

Tom Girling, mortgage product manager at the building society, commented that the "lion's share" of mortgage applications were at a variable rate and he expected to see a lot of interest from borrowers for the new best-buy product.

He said: "The low fee should also prove very attractive for customers as many of the competitive deals in the market still come with high fees."

The rate, which has been cut from by 0.6 per cent to 3.79 per cent, is expected to save house buyers an estimated £1,200 in interest payments over a two-year term on a house priced £150,000.

The Daily Telegraph recently suggested that paying off a mortgage before retirement age was not always the best option for homeowners, who could mitigate the inheritance tax after they die.