12 Dec

Tracker customers 'better off'

Tracker customers 'better off'

Those with tracker mortgages could be as much as £9 billion better off by next Christmas as a result of cuts in interest rates, it has been calculated.

Price comparison website uSwitch.com has worked out that this is how much money tracker mortgage holders in Britain - numbering over three million - could save.

It also projected that those who maintain their old payments and overpay could end up saving a collective £16 billion over the course of their mortgage.

Research by the site found over 616,000 people are using the money they have saved this way, making the most of a reduction from an average annual interest rate of 6.27 per cent to 3.27 per cent.

Those considering taking out mortgages now may consider tracker products on the basis that the base rate may fall again.

Last month head of research at investment management firm Hargreaves Lansdown Mark Dampier said that in the current climate a fall in interest rates to zero per cent is "not impossible" and suggested the base rate will be down to one per cent in February 2009.
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