17 Dec

Tracker mortgages ' are better value for money'

Tracker mortgages ' are better value for money'

Tracker mortgages represent better value for money for homeowners than fixed rate deals, according to a leading mortgage broker.

John Charcol endorsed tracker mortgages in the light of only a small proportion of lenders adjusting their repayment rates in line with recent rate cuts from the Bank of England.

This development means that trackers are more attractive than ever for people who are seeking a variable mortgage deal, Ray Boulger, senior technical manager at John Charcol said.

Mr Boulger explained: "We have seen over the last few years there is always a proportion of lenders who do not move their rate in line with the Bank's rate.

"Most of the time a tracker mortgage is a quarter of a [percentage point] higher than a fixed rate mortgage, providing the starting point is good."

Moreover, Mr Boulger claimed, tracker products are unlikely to be withdrawn by lenders, meaning availability will be strong.

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