Tracker Mortgages

You may want to cash in on the prospect of falling interest rates by taking out or switching to tracker mortgages - loans that mirror movements in the Bank of England base rate. While short term tracker mortgages might be catching homeowners' eyes, is there any value in considering lifetime trackers? With recently increased entry and exit fees on a large number of mortgages, a slightly higher rate over the long term may work out cheaper for some borrowers, say the experts. For those with smaller mortgages a lifetime tracker could be a good option. With loans of about £50,000 or less, the fees lenders charge have more of an impact to the point where borrowers can lose the benefits of regularly re-mortgaging to a cheaper rate and some lifetime trackers offer very good value.

 The key is to look at what the margin is between the tracker mortgage and the base rate. While you won't get a rate as cheap as those on limited period tracker mortgages, if the differential between these products is not too much you might still be better off in the long term. Even those with a big mortgage might find the differential small enough to make it worthwhile, especially if you don't keep track of your mortgage and don't switch to better rates all the time.   This is why tracker mortgages were invented - to ensure long-term value and prevent the lender from failing to pass on the full extent of any base rate cuts or adding more than any rate rise to your mortgage rate.

You can find some great UK mortgage offers here on this site.  Just click on the links on the left hand side to find out more!