Base rate tracker mortgage deals are increasing in popularity
Base rate tracker mortgage deals are becoming increasingly popular with mortgage borrowers.The latest data shows that in fact an estimated 55% of borrowers chose this type of mortgage deal at the end of 2011.
Borrowers are also opting for 'best of both world' deals when deciding whether or not to fix their mortgage rate and, increasingly popular are track and fix hybrid mortgage products. Around 10% of borrowers opt for this type of mortgage.
Hybrid base rate tracker mortgage deals tend to be longer term and offer a blend of both tracker and fixed rates. One such deal is available through Accord Mortgages, it allows borrowers to track the base rate for the first 2 years after which a fixed rate takes over for the remaining 3 years of the 5 year product.
Hybrid deals have become popular with borrowers who are reluctant to take longer term fixed rates, knowing that variable rates are likely to remain low for the time being. These borrowers are also concerned about longer term payment security as they realise in two years time fixed rates could be significantly higher.
Presently Accord offer the only the hybrid deal and interested borrowers have to approach the lender through a mortgage broker. There is hope that other lenders will follow suit and start to offer this kind of product as it could help stimulate the first-time buyer mortgage market.
A hybrid base rate tracker mortgage is a perfect product for borrowers wanting to take advantage of low variable rates currently available, while fixing a future mortgage rate for added security.
