UK Mortgage Holders are Betting a BOE Rate Cut Is Coming
- While fixed rates dominate market, floating rate deals cheaper
- Move would speed up the BOE’s rate changes on broader economy
Households are looking at variable deals rather than being locked in at a higher rate.
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
Britons are turning to floating rate mortgages that track the Bank of England’s key lending rate in a bet that policy makers will soon begin to slash borrowing costs.
The share of people seeking a “tracker” or variable rate loan when they buy a home or remortgage has more than doubled since a surge in borrowing costs ended an era of cheap fixed rate deals last year.