Best Variable Mortgage Deals

In my opinion, variable mortgages offer better value at the moment. The state of the economy makes it more likely that interest rates will fall over the coming year. The credit crunch and declining housing market have caused the government to reduce their growth forecasts; lower growth should cause lower inflation and therefore enable the MPC to cut rates.

Tracker mortgages may be a particularly good choice because with a standard variable mortgage there is no guarantee that banks will base the base rate on to consumers. However, with a tracker mortgage they have to. (tracker mortgages offer best deal)

Although the chancellor, Alistair Darling announced plans for fixed rate mortgages to be encouraged many British homeowners prefer taking out variable mortgages. This is because often initially they are cheaper; you have to pay a premium for the security of a fixed rate mortgage. With interest rates low, a fixed rate may not offer a good return in the short term. However, it is always difficult to predict interest rates into the medium term. For those homewners seeking guaranteed payments, fixed rates are the best choice in the long term.


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