uSwitch: Tracker mortgages relaunched above base rate

Date:Friday 21st November 2008
Author: Max Freedman

A number of mortgage lenders are relaunching their tracker products above the base rate, research by uSwitch has found.

The price comparison and switching service said that in October, the average tracker mortgage rate was 6.27 per cent APR.

This was 1.77 per cent more than the base rate in that month.

Furthermore, uSwitch discovered that 16 mortgage providers have relaunched their trackers at an average rate of 5.24 per cent, while the base rate is three per cent.

uSwitch also warned that some mortgage lenders are making large gains through arrangement and booking fees which mean the real repayment per month is higher than advertised.

In related news, the Council of Mortgage Lenders (CML) has reported that last month's gross mortgage lending was 44 per cent less than the figure in October 2007.

In October last year the figure was £33.4 billion and this year it was £18.7 billion.

CML director-general Michael Coogan cited declining consumer confidence and lack of mortgage funding as problems.