RSS FeedsConsumers think about variable rate mortgages
11/12/2007
Latest mortgage industry data suggests that mortgage interest payments made up a largest share of peoples income (adults). This has prompted those intending to take out or switch mortgage products to consider variable rate mortgages with a view that the future holds decreases in interest rates. A recent sign to encourage house price movement and affordability has been evident in the Bank of Englands chop in interest rates for the first time in 24 months to 5.5%.
Mortgage affordability figures have continued to fall during October 2007 reports the Council of Mortgage Lenders. The report outlines a number of key statistics which supports the news such as the decrease in number of people now taking out a fixed rate mortgage product, figures suggest an all time year low of 70% of fixed rate borrowing.
CML director general Michael Coogan commented "For those customers coming to the end of their fixed rate mortgage in 2008, the potential impact of higher monthly payments will be diminished by the fall in bank rate this month and other rate reductions to come early in the New Year", Coogan also added “mortgage loan volumes were likely to fall in the coming months as borrowers and lenders, especially, assumed a more cautious stance”.