Mortgage News

Tracker mortgages 'offer better value' - 13/12/2007

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Tracker mortgages can frequently provide consumers with better value than fixed-rate mortgages, according to a spokesman from John Charcol.

Ray Boulger, senior technical director at the independent mortgage adviser, said tracker mortgage rates always move in accordance with those set out by the Bank of England, rather than at the discretion of the individual lender.

He explained that as long as the starting point of the mortgage is good, this means that people who hold long-term tracker mortgages often get better value than those who pay at a fixed rate.

"I think that now trackers are really coming into their own," he said.

Mr Boulger added that although the credit squeeze has caused some lenders to remove mortgage products from the marketplace, "availability is not a problem" when it comes to trackers.

"We've been recommending tracker mortgages for those people who want a variable mortgage for a long time," he said.

According to the Press Association, following the Bank of England's reduction of the base rate by 0.25 per cent, Abbey, Nationwide and Halifax have all lowered their mortgage rates accordingly.

Some eight of the UK's 120 mortgage lenders have followed suit, the news source said.

© Adfero

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