Tracker mortgages ' are better value for money'
Tracker mortgages represent better value for money for homeowners
than fixed rate deals, according to a leading mortgage
John Charcol endorsed tracker mortgages in the light of only a
small proportion of lenders adjusting their repayment rates in line
with recent rate cuts from the Bank of England.
This development means that trackers are more attractive than ever
for people who are seeking a variable mortgage deal, Ray Boulger,
senior technical manager at John Charcol said.
Mr Boulger explained: "We have seen over the last few years there
is always a proportion of lenders who do not move their rate in
line with the Bank's rate.
"Most of the time a tracker mortgage is a quarter of a [percentage
point] higher than a fixed rate mortgage, providing the starting
point is good."
Moreover, Mr Boulger claimed, tracker products are unlikely to be
withdrawn by lenders, meaning availability will be strong.