Principality Building Society three-year tracker switch to fixed mortgage 'offers options'

Date:Friday 3rd September 2010
Author: Max Freedman

Consumers can benefit from additional options by signing up to the Principality Building Society three-year tracker switch to fixed mortgage, says a source at the firm.

Marketing director James Wright explained that people can decide to change to a fixed interest rate deal if evidence of a potential increase in the base rate begins to grow.

He said: "We recognise that the current climate coupled with conflicting economic forecasts, pose a confusing set of circumstances for borrowers."

Mr Wright noted that some city analysts are predicting interest rates will stay low for a significant period of time, but others believe they could increase ten-fold by 2012.

In his opinion, that is what makes this product a great choice, as the tracker part of the deal follows the base rate at +2.49 per cent and borrowers can switch to the standard variable rate of 4.99 per cent if they wish.

The next decision regarding the base rate is due to be carried out on September 9th.