Track to fix deals present an interesting tracker mortgage variation.
Tracker mortgage rates are following the general mortgage trend by increasing. However rates on trackers remain in general competitive, and one of the most interesting deals on offer is track to fix.
Competitive tracker mortgage rates are offered by the Yorkshire Building Society and the Chelsea, rates have increased but tracker to fix options remain competitive.
The Yorkshire offer a 2 year tracker which then reverts to a 3 year fixed deal at an initial rate of 2.49% plus base, reverting to 3.99% for the 3 year fixed period. The deal is on offer for 75% LTV and has a £995 fee.
Mortgage rates are being pushed up by a lack of competition. As lenders SVRs have increased more home-owners have needed to remortgage. Lenders have increased rates to both improve their profits and to limit new business demand.
Fixed rates tend to be priced higher than a tracker as a measure of the lack risk. Those willing to take a gamble are rewarded with lower rates, however a track and fix mortgage bridges the gap between the two. Home-owners are given the option to take advantage while the BoE base rate remains low, while being offered security against a likely base rate rise in the form of a 3 year fixed rate.
If you are looking to compare tracker mortgage rates against those offered for a fixed deal, contact independent broker Deal Direct today. We will source the right mortgage for you.
