Tracker Mortgage loans may be the safer option
15/01/09
Homeowners who are looking for a mortgage loan are being encouraged to go for tracker mortgages as opposed to fixed rate deals which are generally more popular. First time home owners and those who have a mortgage due for renewal are being encouraged to go for tracker deals as interest rates are low and many say they may fall even further.
Banks and Building societies are failing to pass on the full interest rates cuts onto customers so homeowners who have fixed rate mortgage loan deals may benefit, but may be slow. Those on tracker mortgage loans will reap the benefits of cuts in interest rates.
Independent mortgage broker Ray Boulger commented, “The base rate is likely to stay low for the remainder of this year and there is still scope for rates to fall further. Tracker borrowers will benefit most if rates fall, so trackers with no collar the minimum rate that some lenders apply on trackers remain the ideal choice in today's market.”
