Variable rate mortgages double in popularity

New research by independent mortgage broker John Charcol has shown that variable rate mortgages are gaining headway among customers against fixed-rate alternatives.Some 35 per cent of clients with the firm chose a variable rate deal in July, compared to 17 per cent the previous month, and John Charcol puts this down to recent rises in the cost of fixed-rate mortgages .

A 19-month look at the recent history of fixed-rate deals at the company shows that they peaked in April 2008 then dropped again, followed by an even bigger burst of activity in the same month this year.

Ray Boulger, senior technical manager at John Charcol, said: "This reflects the changing views on how long interest rates will stay low and in particular the actions of the Bank of England this month in the major extension of its Quantitative Easing programme."Writing for This Is Money, Neil Simpson recently advised those coming to the end of their fixed-rate mortgage term this autumn to switch to a standard variable rate deal .