28
Aug
John Charcol: Variable rates market share more than doubles in July
John Charcol's tracker and discount share of the mortgage market
was up to 35 per cent in July, from 17 per cent in June, according
to the firm.
The John Charcol Index, the monthly mortgage activity monitor from
the independent mortgage adviser, reported that following the
recent steep rise in the cost of fixed-rate mortgages, the sheen
has gone off them, while variable rate deals appear to be
thriving.
Spokesperson Ray Boulger, who the company describes as a
widely-renowned mortgage "guru", said that variable rate uptake
more than doubled as a result of the rapid increases in the cost of
fixed rates during June, which eroded their value in insuring
against future interest rate increases.
"In July we advised more clients to take a tracker or discount
rate," he said.
"A modest increase in the availability of tracker and discount
rates above 75 per cent loan-to-value also facilitated the move
away from fixed rates."
