Property investors advised to choose variable rates
Variable rates look set to continue to be the best option for those buying property in the UK, it has been observed.
Mortgage adviser John Charcol stated that it is recommending that clients choose these deals, as interest rates are expecting to stay low until 2011.
Figures from the firm indicated that fixed-rate products declined in popularity last month, with the 34.3% of borrowers choosing them representing the smallest proportion of the year so far.
The company's Ray Boulger remarked: "The differential between fixed and variable-rate pricing still means that fixed rates are discounting a quicker and larger rise in interest rates than looks likely."
Those investing in buy-to-let property could be benefiting from an increase in available finance, as British Bankers' Association figures have demonstrated growth in lending.
According to the body, the value of mortgages granted last month was up £3.1 billion compared to August, with an annual rise of 4.6%.
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