Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Tracker mortgages growing in popularity

Tracker mortgages growing in popularity

April 11, 2008 by admin  
Filed under News, News-Mortgages

Leave a Comment

Tracker mortgages are growing more popular than fixed-rate mortgages as a result of expectations that the of interest will fall, it has emerged.

A total of 35 per cent of borrowers opted for a tracker mortgage last month, up from 33 per cent in January, according to new research from the Council of Mortgage Lenders (CML). This figure was up from 14 per cent a year ago.

Meanwhile, fixed-rate mortgages fell to their lowest level of popularity since March 2005.

“The trend away from fixed-rate products continues as expectations of further bank base rate reductions, probably starting this week, have increased,” commented Michael Coogan, director general of the CML.

The Bank of England’s Monetary Policy Committee will meet on Thursday (April 10th) amid predictions that the current base rate of 5.25 per cent will be reduced.

However, expectations of a cut in official rates have also prompted lenders to increase their rates on tracker mortgages.

The CML also reported that the number of loans for house purchase dropped by 3.5 per cent from last month to 49,200, the lowest quantity since records began in 2002.

Tags: Bank of England's Monetary Policy Committee, Thursday, trend, lowest quantity, CML.The Bank, council of mortgage lenders, cent, base rate

Tags:

Related Entries

  • Tracker mortgages ‘best bet’
    • Tracker mortgages are the "best bet" for those consumers who want to benefit from falling interest rates this year, according to finance experts. Moneysupermarket.com said that while rates have been going down, increasing numbers of
  • Tracker mortgages ‘coming into their own’
    • Tracker mortgages are now "really coming into their own," according to a leading mortgage adviser. Ray Boulger, senior technical director and spokesperson for John Charcol, has said that, "providing the starting point is good", a
  • Tracker rate deals gaining popularity
    • Fear over the fate of the UK property market has led to a significant increase in tracker rate mortgage interest.According to GE Money, tracker and discount products are set to account for a third of
  • Tracker Mortgages
    • These days consumers in the UK can select from a range of mortgage types and deals, with something to suit most needs, circumstances, and budgets. One type of mortgage that is available on the market
  • John Charcol unveils buy-to-let mortgage brace
    • Mortgage broker John Charcol has launched two new tracker mortgages for buy-to-let investors, with rental cover requirements which are "not too onerous".One of the John Charcol mortgages possesses a 90 per cent loan-to-value (LTV) rate
  • 100% plus LTV mortgages set to grow in popularity
    • The 100 per cent mortgage market is set to grow, according to industry experts.Brokers were polled by Alliance & Leicester, which reveals today, with 78 per cent predicting that increasing amounts will be taken out
  • Buy-to-let is growing
    • The buy-to-let market is set to grow in 2007, with the latest figures showing that around one fifth of mortgages will be taken out on homes which will then be rented.According to Birmingham Midshires, the
  • Brits choose ’stability’ when renewing mortgages
    • Millions of Brits would opt to fix their mortgage rate for five or more years if they needed to renew it, it has emerged.Recent research by Abbey Mortgages has revealed that one in three (5.1

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!