19 Mar

Prospect of rate cuts 'results in tracker popularity'

Prospect of rate cuts 'results in tracker popularity'

Tracker-rate mortgage deals are growing in popularity for first-time buyers because they believe interest rates could drop again in the near future, it has been claimed.

Sue Anderson from the Council of Mortgage Lenders (CML) stated that while in the past such buyers may have headed towards fixed-rate deals, there is more of an "appetite" for tracker products in the current climate.

But it is hard to put everybody in the same bracket, she argued, because consumers need to analyse their personal situation to see what mortgages are correct for them.

"People need to recognise their own attitude to risk and the risk of rates moving either in their favour or against them and the extent to which they want absolute certainty about their level of outgoings," she commented.

And while not all consumers are the same in terms of their needs, she added, at present key aspects mortgage holders will be looking for include "flexibility and certainty".

Last month, the CML documented that homeowners have started to gravitate more towards tracker deals.ADNFCR-1222-ID-18516931-ADNFCR

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