Tracker or fixed rate mortgage – which to choose post bank rate cut?
The bank rate has been cut making tracker mortgages look more attractive to borrowers, but the question is - which would save you the most money on your home?
If you would like to know which deal you would be better off with, then you should seek impartial advice. A full review of your current mortgage offer, financial circumstances and mortgage needs will be needed in order to receive tailored advice. However, before making that call to find out what our expert advisers say what’s the overview?
Current tracker holders could be due a drop in rate dependent on the deal they struck with their lender, however it’s not such great news for new borrowers. Last month saw several lenders hike their tracker rates for new borrowers in anticipation of the rate cut.
Just a couple of days ago the Nationwide BS increased their new borrower tracker rate by 0.1%, and more lenders are expected to follow suit.
With fixed rates we haven’t seen any rate hikes, in fact the opposite. Since the Brexit result was announced many lenders have cut rates. Fixed rates remain at record lows, and are highly competitive against trackers. At present deals can be found at under 1% if you have a good deposit.
When trying to work out which is the way to go, you have to assess how much of a risk you are willing to take and if a tracker really would work out the most affordable product overall.
The best thing to do is to make a like-for-like comparison of all deals (both tracker and fixed) in the market. Once you’ve done this you can see what really would offer the best value and lowest repayments.
If the prospect of comparing apples (trackers) and oranges (fixed rates) is daunting – and lets face it it’s a complex business – call us at Deal Direct on 0800 048 8828.
Whether you are looking to remortgage or buy a new home, we can compare every product on offer at your deposit level to find you the one which is best for your needs and your pocket.
Speak to us today for no-obligation advice and a low rate quote.
0800 048 8828
