Santander reports fall in popularity for tracker mortgages

Date:Monday 25th January 2010
Author: Max Freedman

The number of people wishing to take out a tracker mortgage has fallen recently, according to Santander.

Individuals who are coming to the end of their mortgage product in the next six months may well be thinking of opting for a fixed-rate deal, rather than choosing a tracker product.

Phil Cliff, director of mortgage marketing at Santander UK, commented: "With many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed-rate deal."

Of the estimated 880,000 people who are currently on tracker or fixed-rate products, just 13 per cent are planning to opt for a tracker, compared to the 33 per cent who said they favoured this option two months ago.

Earlier this month, Santander announced it was reducing the rate on its tracker products by 0.5 per cent, which was available on mortgages with up to 85 per cent loan-to-value.