Trackers most popular mortgages in December

Date:Wednesday 20th January 2010
Author: Max Freedman

Tracker mortgages were the most popular product in December, according to the latest figures from John Charcol.

The mortgage advice group has stated that the findings come as no surprise to them as they believe the best value products available at present are trackers.

Ray Boulger from John Charcol commented that the average rate of difference between the best fixed-rate products and the first rate on the best trackers is currently 1.5 per cent.

"It will currently take a substantial rise in bank rate for a borrower who takes a tracker to be worse off than one who opts for a fixed rate," he stated.

Mr Boulger added that, while some people prefer the security that is provided by a fixed-rate deal, they must question in the current climate if they are paying more for their loan than they have to.

John Carcol recently commented on the fall in fixed-rate pricing, stating that increased competition as more people look to enter the mortgage market was a major factor in the reductions.