Trackers Mortgages give better value for Money!

Posted 2007-11-17

The Bank of England has recently made a cut in interest rates. However, in spite of this cut, John Charcol, who works as a mortgage broker states that Tracker mortgages are better value than fixed-rate mortgages. 

His opinion is seconded by his senior technical manager Ray Boulger. According to Ray Boulger there are a number of factors behind this. First is that a tracker mortgage is just a quarter of a percentage point more than a fixed rate mortgage. Secondly, there are a certain percentage of lenders who do not change their interest rates according to the Bank’s rate. Thirdly many lenders had reduced the number of mortgages they offers because of the credit squeeze, but they have not affected or changed their tracker mortgages. All this put together make tracker mortgages an attractive option and in the coming year the availability of trackers would remain strong.

While he expects tracker mortgages to be popular, he does not expect people to switch mortgages lender the new lender will have to offer rates lower than the current tracker mortgage rates, which are very attractive.

Leave a Reply