7 Sep

Homebuyers given advice on choosing between tracker and fixed-rate loans

Homebuyers given advice on choosing between tracker and fixed-rate loans

Homebuyers sorting out the mortgage on a house for sale in the UK have been given help with choosing between tracker and fixed-rate loans.

Principality Building Society has recently launched a new mortgage product, which is designed to take away this dilemma for future homeowners.

The three-year Tracker Switch to Fixed product is available on a variable rate (2.99 per cent at the moment), which is then available to switch to a fixed-rate product at any time in the future.

Homeowners who choose to keep their mortgage at a changeable rate will then be able to swap to the firm's Standard Variable Rate loan of 3.99 per cent.

Marketing director at Principality Building Society James Wright said: "We recognise that the current climate coupled with conflicting economic forecasts, pose a confusing set of circumstances for borrowers."

This comes after chartered financial planner at Informed Choice Martin Bamford predicted that the Bank of England base rate will remain at 0.5 per cent "for at least the rest of this year" - which will come as good news for homeowners with tracker mortgages.ADNFCR-1222-ID-800055401-ADNFCR

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