The number of homeowners opting for a variable rate when they remortgage has dropped 75 per cent over the past year.
It might seem an odd move with interest rates where they are currently but there are still some reasons why borrowers would take out a mortgage that could rise rather than a fixed-rate.
There are actually still some really good reasons to take a variable rate mortgage over a fixed rate – even when it’s likely the base rate will rise again next year.
Andrew Montlake, of mortgage broker Coreco, said: ‘Variable rates have their advantages, especially for those who want a bit more flexibility over how they pay off their mortgage.
One thing borrowers need to be aware of though is that not all variable rate mortgages are equal. Speaking to an expert before taking out a mortgage of any kind is highly advised.