Floating-ratemortgageslast year reduced manyborrowers'paymentburden as theBank of Englanddropped its baserateto 0.5% and lenders adjusted their standardvariableratesdownward in response.
Mark Harris, chief executive of mortgage broker SPF Private Clients, explained that most mortgages track a lender's standard variable rate, or the baserate, so most are not directly affected by Libor.
Floating-rate mortgages last year reduced many borrowers' payment burden as the Bank of England dropped its baserate to 0.5% and lenders adjusted their standard variable rates downward in response.