Money News
15th August 2008
Tracker mortgages recommended by mortgage broker
Homebuyers have been urged to opt for tracker mortgages when purchasing a home in the current climate.
John Charcol has advised buyers to choose trackers, due to signs that the Bank of England will cut interest rates in months to come - thereby leaving those on trackers better off than their peers who chosen a fixed-rate offering.
Drew Wotherspoon of Charcol.co.uk explained: "To say the mortgage market has been an enigma of late would be an understatement of epic proportions. With news, most of it negative, emanating on a daily basis, borrowers could be forgiven for not knowing whether to fix, track, cap or offset.
"However, with news from the Bank of England on inflation revealing a marked increase, and indeed an expectation of an equally marked decrease to come, it now seems highly probable that Bank Rate will fall sharply in 2009."
Research conducted by the mortgage broker showed that the rates on tracker mortgages are around 0.3 per cent less than on fixed rate equivalents.
The key base rate of interest has remained at five per cent for the last four months.
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