Tracker mortgages ‘coming into their own’
December 15, 2007 by admin
Filed under News, News-Mortgages
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 nearly always gets you better value than a fixed rate mortgage.
He said: “We’ve been recommending tracker mortgages for those people who want a variable mortgage for a long time.”
A tracker ensures a consumer’s interest rate on a mortgage moves in line with the Bank of England’s rate. This does not leave home owners “at the mercy of your lender”.
There are a “proportion of lenders” that do not move their standard variable rates and associated discount rates in line with the Bank’s rate.
Mr Boulger added that “availability is not a problem” for tracker deals.
While Nationwide, Abbey and Halifax have all lowered their rates, following the Bank of England’s reduction in its base rate by a quarter of a per cent, the Press Association reports that they are three of only eight of the 120 or so mortgage lenders in the UK to have done so.
