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Tracker mortgages "coming into their own"

The recent interest rate cut and predictions of further drops in the new year has meant that the appeal of tracker mortgages is increasing among homeowners, an expert has claimed.

Ray Boulger, senior technical director at John Charcol, said that tracker home loans are "really coming into their own" as the mortgage of choice for people who want a variable rate.

Mr Boulger said that the availability of tracker mortgages is currently "not a problem", despite the fall in interest rates, while claiming that this type of product "nearly always" proves to be better value than a fixed-rate deal.

"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," Mr Boulger explained.

According to the Press Association, only eight of the UK's 120 mortgage lenders have lowered their rates in line with the Bank's reduction of the base rate to 5.5 per cent last week.

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© Adfero Ltd

13/12/2007 16:36:15

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