Tracker mortgage deals remain cheap.
Tracker mortgage deals are a good option for those who want low mortgage rates.
Trackers are variable, fluctuating up and down in a clear way linked to the Bank of England base rate.
Such deals are straightforward and cannot be manipulated in the way that SVRs can. Standard variable rate mortgages are at lenders discretion and recent SVR hikes have not been because of a base rate change but because of lenders increased funding costs.
The main advantage to a tracker mortgage deal versus a fixed rate is cheapness. According to Moneyfacts the current average UK fixed rate is around 4.63 per cent, while the average UK tracker rate is around 3.66 per cent. The base rate would need to significantly increase for a tracker to become less attractive.
It is believed that the base rate may not rise this year and possibly not for the next 2 years, therefore trackers could have a lot to offer those wanting a cheap rate. However interest rate predictions are not a science and if the base rate rose unexpectedly then tracker mortgage holders would see their monthly repayments rise too. That is of course unless a cap was in place.
Various lenders offer tracker mortgage deals. First Direct have a 2 year deal for 65 per cent LTV offered at 2.29 per cent with a £999 fee, a lower fee option is available at 2.39 per cent for 65 LTV with a £499 fee. The Chelsea also offer a 2 year deal at 2.39 per cent for 70 per cent LTV but with a £1,495 fee.
For the best tracker mortgage rates on offer contact Deal Direct today.
