The advice from the Boe’s quarterly report that interest rates will probably stay at their record low of half a per cent for some time to come. Therefore if you want the best rate for your mortgage deal then looking for a tracker mortgage deal is going to offer the best value.
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Over the last few months it has been difficult to determine what is best for those looking for mortgages. The base rate has been at the historical low of only half a per cent since March this year. Many people have gone for fixed rate mortgage deals so they can lock in now for two, three, five or some have gone for ten years so they have that peace of mind of knowing that their monthly repayments will be the same each and every month. Others have opted for fixed rate mortgages because they believe that the Bank of England base rate will be soon rising again once the economy starts to recover.
However you may have read this week new predictions from the best of sources, the Bank of England, that a recovery from the recession will be much slower than initially thought. The advice from the Boe’s quarterly report that interest rates will probably stay at their record low of half a per cent for some time to come.
Therefore if you want the best rate for your mortgage deal then looking for a tracker mortgage deal is going to offer the best value. I understand many people always opt for fixed rate mortgage deals no matter the circumstances because they want the security of fixed payments for whatever reason whether it be because they are on a low income or just don’t like risk. For those who don’t mind a small risk, a pretty safe bet to be honest if the news is coming from the Bank of England.
There are tracker mortgage deals that have no early exit charges therefore you can get the benefit of lower mortgage payments with the tracker mortgage and then when rates do start to rise you can switch over to a fixed rate deal.
Tracker mortgages won’t be for everyone, check your current rate to see if it is going to be cheaper for you to keep your current mortgage deal. For those on the standard variable rate of around 3% or less then it isn’t likely to be worth moving your mortgage over to a tracker mortgage.
