Should you consider a tracker remortgage ?

A tracker remortgage can offer excellent value due to the continued low interest rates but there are also comparable fixed rate deals too.

The question is whether to fix your mortgage rate or whether to get a tracker mortgage.

Recently the Monetary Policy Committee suggested that the Bank of England base rate would remain about the same for the next two years. This should mean over the next few months lenders launching competitive mortgage deals with low rate tracker, discounted and fixed rate products.

Many who are approaching the end of their mortgage term should seek advice on the latest deals.

Finding an outstanding deal also depends on the deposit or equity in your property you have amassed. Lenders have limited amount of products for potential borrowers with a five per cent deposit but for borrowers with over twenty five per cent equity in their home the product range is considerably larger.

A tracker remortgage is a good option if you require equity release from your property and the Chelsea Building Society has a two year tracker mortgage with a rate of 2.39 per cent which is the base rate plus 1.89 per cent.

This mortgage does come with a fee of £1,495. First Direst also have a tracker mortgage at 2.69 per cent which is the base rate plus 2.19 per cent. And this product has no arrangement fee.

Alternatively borrowers looking for a tracker remortgage could consider a droplock mortgage. This is a type of tracker or discounted mortgage that then switches to a fixed rate mortgage.

The Yorkshire Building Society recently offered a deal that starts as a tracker at 2.49 per cent and then switches to a fixed rate of 3.89 per cent and is available to those borrowers with twenty five per cent equity in their property and has a fee of £995.