Tracker mortgages with no early repayment charges
A vast majority of homeowners have decided to choose tracker mortgages as they do not involve any early redemption penalties. Mortgage broker, John Charcol, has found that its main 3 mortgage products sold for January 2008 were its tracker mortgages.
Technical manager, Katie Tucker commented: “ Another Bank Rate drop should give lenders sufficient confidence that cost of their funds will remain low, allowing more of them to offer fixed rates under 5%. The few lenders that have released sub 5% two year fixes, such as Bristol & West and Leeds, ran out of money on them in less than a week.”
Homeowners coming to the end of their current mortgage deal have decided to choose the tracker rate mortgage plan, majority of these people were tied in a fixed rate mortgage deal.
Tucker spoke further in relation to which lenders were involved: “This week, lenders including Abbey, Cheltenham and Gloucester, First Active, Halifax and Nationwide have put their tracker rates up or their fixed rates down, in expectation of another Bank Rate drop in February.
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