logo

Anyone for a Variable Mortgage?

Posted on: Friday, September 11, 2015

Fixed rate mortgages have been the most popular type of mortgage by far, which is not likely to come as a surprise given the ultra low rates on offer.  With Bank of England Base Rate at rock bottom borrowers like the certainty that fixed rates offer, especially when interest rates look set to climb at some point.

The vast majority have therefore elected to lock their rate down with a fix, given the very competitive deals and the fact that there is little to no chance of Base Rate falling.  Against that backdrop why might a variable rate mortgage be a good choice?

It’s not just fixed rates that have improved in the lender rate war and some tracker and discount rates can offer very low rates, slightly undercutting those on corresponding fixed rates.  Those that feel there is still a way to go before interest rates start to climb may therefore feel a tracker offers good value.

Secondly, trackers and other variable rate options are far less likely to carry any early repayment charges, which generally apply on fixed deals.  These charges tie the borrower in so those that need more flexibility, either to overpay or to keep their options open, will find the freedom of many variable products attractive.

Of course, any borrower that is considering a variable product will need to check that they are well equipped to cope with higher payments, if interest rates do start to climb sooner and/or more quickly than they expected.  Looking at the impact of higher rates on the mortgage payment will help a borrower test just how much they value flexibility over security.

It’s unlikely that we will see a big shift from fixed rates towards trackers and borrowers understandably like to know where they stand.  However, variable products should not be dismissed and can be a good option for the right borrower.

Read What Our
Customers Say

"

We really wanted a purchase to go ahead through Wilkes-Green and Hill as you have been the most helpful agent we have ever come across (including Newcastle, Glasgow and Carlisle cities!) and we are sorry that the time you have expended on us has been in vain...

"

Thanks to you all for making the sale of Mum's house so easy at a difficult time for myself and family...

"

I've bought and sold many places - leading to a low opinion of estate agents! Until you came along! Many thanks for your professionalism, hard work and continued efforts. They are very much appreciated.

"

Thanks for all your hard work and brilliant service!

"

It's not very often that you come across someone so helpful and enthusiastic that it makes you smile!!Moving house was supposed to be stressful; thanks for making it so easy!! Your professionalism and hard work is much appreciated.

"

You have handled the situation admirably, as have your staff...

"

I would like to say again how grateful I am for all of your support since you took the property on to your books and all of the advice you have given me which was often above and beyond the call of duty. Your professionalism throughout has been excellent...

"

A very big thank you to all of you for really fantastic service...definitely 5-star!

"

...for your attention to detail and always returning my calls...

"

...we would like to thank you, Gayle, Amanda and Tracy for all your help and kindness over the last 5 years, which has helped us tremendously. We also appreciate that you have gone the extra mile in several circumstances knowing that we were so far away...

"

Having recently used 3 other agents I can say with hesitation that WGH are in a different league, very professional, efficient, polite and friendly. 3 other agents have marketed my house which only achieved 2 viewings in total. I had 2 viewings with WGH in the first week which I put down to their marketing skills

"

WG-H couldn't have been more helpful, queries were answered immediately by professional courteous staff , and they even offered to turn the heating up in our holiday house when the weather was particularly cold. Gayle would ring us during an evening to respond to our query , if required and Amanda even paid a cheque into our bank account. What a lovely company to work with.

"

Adrian and his team have been amazing from start to finish. Very polished team, with the highest standards. I have recommended them to friends and family who have also been impressed by them.

How Much is Your Property Worth?

How Much is Your Property Worth?

Not sure how much your property is worth? Request a free, no obligation valuation for your property.

Book a Valuation