FTBs opt for tracker rates


Tue 18th Mar, 14:58:30 GMT

The Council of Mortgage Lenders (CML) claims that first-time buyers (FTBs) are increasingly attracted to tracker-rate mortgages.

It comes as anticipation grows that the base rate of interest is set to fall further in 2008.

The Bank of England''s Monetary Policy Committee (MPC) has already announced rate cuts in December and February and the vast majority of analysts anticipate further falls.

With this in mind, the CML said that FTBs, who usually favour fixed-rate mortgages, are now increasingly turning to tracker-rates.

"In the normal course of things, first-time buyers have tended to be more attracted to fixed-rate mortgages recently than variable-rate mortgages," confirmed CML spokesperson Sue Anderson.

"But at the moment the situation is complex because there is some anticipation that rates may fall again this year so there is greater appetite than what there would normally be for tracker-rates, which will take advantage of rates if they do fall further," she continued.

The base rate of interest currently stands at 5.25 per cent.ADNFCR-1143-ID-18514496-ADNFCR


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