Tracker mortgages 'coming into their own'
Published on : 14/12/2007
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Tracker mortgages are growing in popularity with house buyers as they nearly always offer better value than a fixed rate product, according to a leading UK adviser.
John Charcol's senior technical director, Ray Boulger, also stated that by buying a tracker, consumers are not left "at the mercy" of their lender's rates.
However, he added that while the availability of the products is not a problem, home buyers should only really consider the mortgage type if their starting point is good.
"Because of the services a tracker provides, in that you're guaranteed to have your rate move in line with the Bank of England rate, as opposed to being at the mercy of your lender, I think that now trackers are really coming into their own," he said.
"We have seen over the last few years that there is always a proportion of lenders who do not move their rate in line with the Bank's rate."
The Press Association recently reported that only eight mortgage lenders in the UK have lowered their rates following the Bank of England's reduction in its rate by a quarter of a per cent.
