Tracker-rates return

Posted: 01 Nov 2007 10:35:52 GMT

There has been a resurgence in tracker-rate mortgage deals as confidence of a cut to the base rate of interest grows.

There has been a resurgence in tracker-rate mortgage deals as confidence of a cut to the base rate of interest grows.

A study by GE Money Home Lending shows that 89 per cent of mortgage brokers are confident that interest rates have reached their peak.

In addition, 43 per cent believe that we will see a cut to the rate in February 2008, an opinion supported by industry figures such as Howard Archer from Global Insight.

With recent turmoil in the financial markets, the research also highlighted that many consumers are concerned that they will not be able to get a good deal on a mortgage or remortgage.

However, GE Money Home Lending says that there will be a 120 per cent increase in the number of brokers advising customers to take out tracker-mortgages as confidence that rates will be cut grows.

"Consumers and brokers alike have clearly been concerned by the recent stress in the financial sector and our research indicates that the market is now being boosted by a possible decrease in interest rates in the coming months," said Gerry Bell from the firm.

"This will also be welcome news to those homeowners currently coming to the end of a fixed rate product who are concerned about re-mortgage products and rates that will be available to them," he continued.

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