An economist has claimed that more people have decided to avail variable mortgage rates than previously thought.
Tim Drayson – an economist with Legal and General Investment Management claimed than nearly ninety percent of borrowers are on tracker, capped, discounted or standard variable mortgages while the remaining ten percent are on a fixed rate deal.
Low remortgage levels supported his theory, he said while speaking at L&G’s Fundamentals briefing.
“Ninety percent of borrowers must be on variable rates because we have not seen the remortgage levels necessary for it to be otherwise”, he was quoted as saying by mortgagestrategy.co.uk.
Drayson’s claim contradicts claims made by most experts and is much higher than the 68 percent suggested by the FSA.
Recent surveys indicate that the average two year fixed-rate mortgage is on a ten month high of 4.59 percent.
A study conducted by moneyfacts.co.uk found that the average two year tracker mortgage has fallen to its lowest level of 3.40 percent, since the company started keeping records in 1988.