Tracker mortgages 'rise in popularity'

Date:Monday 10th August 2009
Author: Max Freedman

Last month, tracker mortgages rose in popularity among UK consumers, it has been revealed.

Figures produced by Mortgageforce show that whereas 75 per cent of consumers taking out home loans in June selected fixed-rate products, this fell to 63 per cent in July, with consumers seeking alternatives.

Commenting on the issue, technical manager at the organisation Katie Tucker said: "Lenders released some storming tracker and discount rates in response to the rush on fixed rates in June because bank and building societies' own loan sheets have to have a balance between fixed-rate customers and variable-rate customers."

She added that tracker mortgage repayments can go up if the base rate of interest rises.

However, consumers who have calculated that they would be able to afford increased repayments can currently take advantage of some of the "great rates" available on such loans.

Recently, the expert suggested that an improvement in the availability of mortgages has precipitated a rise in confidence in the UK's property market.