Variable rate mortgages accounted for 80.9% of loans arranged by broker John Charcol in December 2009.
The latest monthly index from John Charcol revealed that the proportion of variable rate take-up increased for the seventh consecutive month while the proportion of fixed rates fell below 20% for the first time since August 2008.
Ray Boulger, senior technical manager at John Charcol, said the best value lay in tracker rates at present.
He adds: "With the average difference between the best fixed rates and the initial rate on the best trackers around 1.5% in favour of trackers, it will currently take a substantial rise in bank rate for a borrower who takes a tracker to be worse off than one who opts for a fixed rate."
Boulger says the bank base rate is likely to stay very low for quite some time, making the need for quality advice more important.
He adds: "Generic advice on whether to take a fixed often simplistically states that if you cannot afford a rise in rates then you should take a fixed rate. When there is a gap as wide as in today's market, being generic can easily be misleading. A key part of our service will be to advise our clients when we think they should switch."
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected