City Investments of Chester

Average Two-year tracker mortgage rates have hit an all-time low

According to Moneyfacts, average two-year tracker rates are now at an unprecedented low level of 1.96%. This is the first time average rates have been lower than 2%

Moneyfacts said there has been a rush of activity from lenders re pricing tracker mortgages after Bank of England reduced the base rate earlier this month.

Average tracker rates are now at 1.96%, compared to 2.02% just six months ago.

Moneyfacts said it was still unclear whether borrowers would rush to take up tracker rate mortgages as with low fixed rate deals are currently widely available. Fixed rate can provide clients with greater security and certainty.

Bizarrely, however, the Halifax has increased rate on its homemover and remortgage tracker offers. According to Moneyfacts, whilst trackers are reaching new lows so are fixed. The average two-year fix mortgage has fallen now to 2.47% versus 2.54% six months ago and 2.68% a year ago.

Interestingly Moneyfacts confirmed that the average rate charged to clients on standard variable rates is 4.78%. Remortgaging to either a fixed or tracker rate would o the face of it seem to offer some savings.

However, borrowers must always check the full details on their offer and, if they are unsure on what type of deal to pick, seek out independent financial advice.

A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Source Moneyfacts by Mortgage Solutions  16/08/2016


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