Tracker rate mortgage deals back on track
Interest rates have been cut meaning homeowners on tracker-rate mortgage deals will be happy to take advantage to use any excess cash generated.
Moneyfacts stated that the anticipated 0.25 percentage point decline could help mortgage borrowers decrease the term of their mortgage deals.
The company suggested that any savings made from the reduction in interest rates should be deposited back into the mortgage deal to clear up loans.
Julia Harris from Moneyfacts stated that on the long term thousands of pounds could be saved if people choose to reinvest in their mortgage deals.
"If the rate gets cut by more, or cut again later in the year, the savings could be even greater. These savings will only be possible if your mortgage lender allows you to overpay. According to Moneyfacts, 84 per cent of mortgages available today allow overpayments."
The Bank of England's Monetary Policy Committee is in the process to broadcast its February interest rate assessment around 11:00 GMT. Tracker rate mortgage deals have their advantages and disadvantages, but today it has proven that people are choosing to reinvest their profits back into their mortgage deals.
Free Mortgage Enquiry