An industry figure has commented on how variable mortgages such as trackers could be a better option than a fixed-rate deal at the moment.Bestinvest head of mortgages Peter O'Donovan was responding to figures from John Charcol, which suggested that more people were taking up variable-rate loans for house purchase or remortgaging purposes.
Mr O'Donovan said he was "not surprised" by the report as it is widely thought that the base rate will remain low maybe until 2010, meaning that interest on tracker mortgages may also stay more attractive to homeowners .
He added: "If you have got the opportunity of paying maybe 2.75 to three per cent [on a tracker mortgage] or paying over five per cent [on a fixed-rate], then at the moment it is well worth considering the difference between the two.
"Mortgageforce recently reported that July saw 37 per cent of its customers taking out a tracker mortgage over a fixed-rate deal.
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