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Home buyers select tracker mortgages

19/03/2008

A recent investigation has proved that there is a major interest for tracker-rate mortgages, more first-time buyers are feeling comfortable selecting this option.

The Council of Mortgage Lenders (CML) stated that majority of predictions towards further interest rate cuts are fuelling the trend.

Throughout the past, first-time buyers normally inclined to take on fixed-rate mortgage deals but the CML has noticed an increased interest in tracker mortgage deals.

Vast majority of analysts feel that the base rate will be cut at least once more during 2008 and first-time buyers are eager to benefit from this rate reduction.

Sue Anderson, CML spokesperson commented: "In the normal course of things, first-time buyers have tended to be more attracted to fixed-rate mortgages recently than variable-rate mortgages."

He added; "At the moment the situation is complex because there is some anticipation that rates may fall again this year so there is greater appetite than what there would normally be for tracker-rates, which will take advantage of rates if they do fall further."

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