Tracker mortgages 'represent better value currently'

Date:Friday 16th April 2010
Author: Susanna Kavka

John Charcol has claimed that recent Council of Mortgage Lenders (CML) figures are an indication that tracker mortgages are offering better value to people currently, but the company stressed that this situation could change.

Senior technical manager at the firm Ray Boulger made his comments after the CML reported that there were significant increases in the number of completions of mortgages during February compared to the same month the previous year.

The finance expert pointed out there has been more interest in tracker mortgage deals recently and he predicted that this pattern could continue over the next three months.

"This time last year about 80 per cent of our clients were taking fixed-rates and then ... it became clear that rates were going to stay longer and fixed rates went up," remarked Mr Boulger.

He noted that the proportion of the organisation's prospective customers who have been inquiring about getting a fixed-rate mortgage arrangement has fallen to about 20 per cent.