Track or fix? The new dilemma
Mortgage brokers are reporting an increase in borrowers applying to take out tracker mortgages since the Bank of England cut interest rates this month.
Up until recently, only 9 per cent of mortgages were trackers, so-called because their rate of interest follows another rate, most commonly the Bank of England’s base.
Trackers are gaining ground amid anticipation of another cut to the base rate this year, despite the availability of some of the best fixed rate deals the market has produced.
“It may not be the best thing to take out a five-year fix now, even if they are good terms,” says Edward Checkley, a partner at Private Finance, the broker.
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