Borrowers still want variable mortgages despite base rate rise

Ryan Bembridge

November 10, 2017

Yorkshire Building has seen an uptick in enquiries for a variable rate mortgage despite the Bank of England increasing the base rate last week.

In the first week of November 6% of customers chose a discounted SVR mortgage, up fron 3% throughout October.

Mike Sims, senior mortgage manager at Yorkshire Building Society, said: “It’s interesting that some borrowers are still keen to secure a variable mortgage despite the first Bank Rate increase in a decade being announced.

“Borrowers clearly value the opportunity to keep monthly repayments down over certainty of how much they will pay and appear confident that the Bank of England won’t increase rates at pace during the initial term of their mortgage.”

The Bank of England isn’t expect to raise the base rate again until the second quarter of next year.

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