Borrowers are opting for the best of both worlds

Latest John Charcol Mortgage Index reveals December was the strongest month yet for borrowers taking a track and fix Hybrid mortgage.

Last month over 10% of John Charcol borrowers opted to take out one of the most innovative products of the last decade, says Simon Collins Technical Manager at John Charcol, says that December was the best month so far for Hybrid mortgages.

"Borrowers have been reluctant to take longer term fixed rates when they know that variable rates are likely to remain low for the next couple of years at least. Yet at the same time they are anxious over longer term payment security, knowing that in 2 years time, fixed rates may well be significantly higher. The Hybrid is therefore the perfect product for those borrowers who want to take advantage of low variable rates now, while securing a fixed rate element at today's historic low prices.

"The product is a longer term mortgage that is a blend of both tracker and fixed rates, and currently comprises a margin over the bank rate for the first two years of the mortgage, followed by a fixed rate for the final 3 years. Everyone knows that the bank rate will increase at some point, but the big question is when and how fast?"