More Brits are opting for variable-rate mortgages amid speculation that interest rates have reached their peak, new research has suggested.

Spicerhaart Financial Services, part of the Spicerhaart estate agency network, said that while fixed-rate products continue to be the most popular type of mortgage, the number of people choosing variable-rate mortgages had risen from 19 per cent in August to 21 per cent in September.

Growth has been particularly notable in the tracker mortgage market, with 19 per cent of borrowers opting for one in September, up six per cent from the same time last year.

Steve Cox, operations director of Spicerhaart Financial Services, said: "Secure in their financial security, people are hedging their bets and opting for variable products rather than locking themselves into the current high rates."

Mr Cox also commented that while fixed-rate deals set for seven to 25 years remained stable, two-year products had seen the biggest drop off in demand, "suggesting that borrowers expect an imminent drop in interest rates".

Michael Coogan, the director general of the Council of Mortgage Lenders, said yesterday he anticipated that the Bank of England would cut interest rates from their current level of 5.75 per cent next month.