Mortgage lenders equip for base rate changes on tracker mortgages
The Bank of England has hinted that the base rate may increase on tracker mortgages.
Moneyfacts.co.uk have found that over ten lenders have raised their profit margins on tracker mortgages by nearly 0.45 per cent.
Mortgage analyst at Moneyfacts.co.uk, Denise Harvey commented: “With the demand for fixed rates dropping and with further base rate reductions expected, variable rates are back in vogue. Variable rates linked to the lenders standard variable rate, typically discounted deals, can be tweaked by the lender at anytime.”
Moneyfacts.co.uk stated that for any potential borrower thinking to take lead of predictable cuts in base rate by choosing a tracker rate mortgage, should act swiftly, or end up getting tied with higher interest rates.
Harvey added: “The market still has room to fall further, so you may be wise to hold back from fixing in too early.”
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