Borrowers look to tracker deals
Wed 9th Apr, 16:48:13 BST
Mortgage borrowers are increasingly turning to tracker-rate mortgages, according to the latest figures.
The Council of Mortgage Lenders (CML) has revealed that 35 per cent of all borrowers in February took out tracker-rate deals.
That is up on the 33 per cent who did the same in January and the 14 per cent in February 2007.
As a consequence of the rise in popularity of tracker-rate deals, fixed-rate mortgages declined.
Of all the mortgages borrowed in February, 52 per cent were tracker rates the lowest figure since March 2005.
Michael Coogan, CML director general, said that the promise of falling interest rates has led to the change in attitude among borrowers.
"The trend away from fixed-rate products continues as expectations of further Bank base rate reductions, probably starting this week, have increased," he commented.
Members of the Bank of England''s Monetary Policy Committee are meeting tomorrow (April 10th) to announce this month''s base rate of interest.
The Council of Mortgage Lenders (CML) has revealed that 35 per cent of all borrowers in February took out tracker-rate deals.
That is up on the 33 per cent who did the same in January and the 14 per cent in February 2007.
As a consequence of the rise in popularity of tracker-rate deals, fixed-rate mortgages declined.
Of all the mortgages borrowed in February, 52 per cent were tracker rates the lowest figure since March 2005.
Michael Coogan, CML director general, said that the promise of falling interest rates has led to the change in attitude among borrowers.
"The trend away from fixed-rate products continues as expectations of further Bank base rate reductions, probably starting this week, have increased," he commented.
Members of the Bank of England''s Monetary Policy Committee are meeting tomorrow (April 10th) to announce this month''s base rate of interest.
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