Introducer Today

News Story

Tracker products are cheaper 'for now'

Tuesday 30th June 2009

When people are considering what kind of mortgage to opt for, the first thing they look at is usually the interest rate.

At the moment, tracker mortgages are the tempting option – being the cheapest by an average of 1.5 per cent, according to moneysupermarket.com.

However, if the base rate rises by 1.5 per cent – bearing in mind it is already at the historically low level of 0.5 per cent – then tracker deals will cost more than existing fixed-rate deals.

According to moneysupermarket.com, a borrower with a £300,000 mortgage could end up paying on average £120 a month more for a two-year fixed-rate deal when compared with the average tracker.

However, this will not be the case if analysts are correct, and the base rate rises.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "Borrowers should not be seduced by the opportunity to make short term savings by opting for a tracker mortgage deal.

"They must take the expected base rate rises into consideration right from the start."

Earlier this month, the recent drop in fixed-rate mortgage uptake was put down to the low-cost of trackers, according to Mortgageforce.

© Copyright 2007

Send to a Friend

View Comments 0 comments

Report Abuse

There have been no news comments

Post Comments

Please login to post comments:

Post Comments without login

Most Read News Stories:

Regulator to ban self-cert mortgages
Tuesday 13th October 2009

Tesco to launch mortgages before current accounts
Monday 23rd November 2009

Order to suspend HIPs is signed
Monday 17th May 2010

Mortgage advisor pleads guilty to charges
Wednesday 29th October 2008

Case result major blow for claims management firms
Monday 26th October 2009

Discuss in Forum

RSS Feed News Archive

Share this article:

Digg it

Del.icio.us

Newsvine

Nowpublic

Feedback:

If you have any questions or suggestions about this article or our news section, please don't hesitate to contact us.

Claims Financial are a market leader in the £30 billion financial compensation market and 99% of our work comes from partners just like you.

Read More