Has the sub-1% tracker mortgage disappeared forever?
Until November 1st, Barclays was offering its 2-year tracker mortgage at a rate of 0.99%.
However, as a consequence of the Bank of England’s monetary policy decision to raise the base rate by 0.25%, lenders have responded by increasing their rates by an average of 0.2%.
The average cost of a 2-year tracker mortgage has now reverted to the rate being offered this time last year.
While the increase in the base rate was widely anticipated, mortgage providers are taking their time to announce how their mortgage ranges will be affected. Some lenders, such as Accord, have withdrawn their tracker ranges completely while they assess how to reposition themselves in the market.
This period of indecision can be beneficial for you, the borrower, as not all lenders will use the same strategy when it comes to setting their rates. This means very low rates are still obtainable, but they will not last forever. Applying for a mortgage now could give you the opportunity to secure a very low-rate deal before all 2-year tracker rates increase above the 2% mark.
Expert mortgage broker, Deal Direct, can give you a detailed overview of what is happening everywhere in the market. After reviewing your financial situation, we can compare the most suitable products for you, often sourcing deals you would be hard pushed to find anywhere else.
To find out about tracker mortgage rates, consult with Deal Direct on 0800 048 8828.
