Tracker mortgages growing in popularity
April 11, 2008 by admin
Filed under News, News-Mortgages
Tracker mortgages are growing more popular than fixed-rate mortgages as a result of expectations that the base rate 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.
