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Interest rates 'will ensure variable rate mortgages remain popular'
Current interest rate levels mean that variable rate mortgages are set to continue to be popular in the near future, according to an expert.
Paula John, editor of independent advice website Your Mortgage, said that as rates are unlikely to go above 1.5 per cent in 2010, variable rates are set to "still remain relatively competitive".
She added that rates may not rise until after the general election, so the interest rate of 0.5 per cent could remain until the middle of the year at least.
"That is helping a lot of people who are on standard variable rates that are quite competitive at the moment," she explained.
"[There will be] more tough times ahead, but there is some good news coming out of the housing and mortgage market so it is more upbeat than we expected."
Research by John Charcol recently highlighted that more than eight out of ten mortgages taken up in December were variable rates, which was the highest percentage recorded since October 2008.