1 Sep

Tracker mortgages are "well worth considering"

Tracker mortgages are "well worth considering"

It is unsurprising that many people are choosing variable deals over fixed rates because the difference between the two is now "quite substantial", according to one property expert.

Peter O'Donovan, head of mortgages at Bestinvest, a firm of IFAs, said that those who are able to choose between paying 2.75 and three per cent or paying over five per cent should bear in mind that it is "well worth considering" the difference between the tracker and fixed-rate deals.

His comments follow the publication of new figures from John Charcol, which shows that the share of the mortgage market taken up by variable rate deals has more than doubled in the last month.

"I have noticed an increase in tracker rates coming up on the sourcing systems," said Mr O'Donovan, adding that people would rather take the risk of staying at a reasonably low rate with a tracker mortgage for a longer period of time than taking the security of a fixed rate "because it is overpriced".

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