Cost of trackers to fall by £9bn

Posted: 12 Dec 2008 11:57:27 GMT

The recent Bank of England base rate cuts now mean that by next Christmas a total saving of £9 billion could be enjoyed by homeowners with tracker mortgages.

The Bank of England recently cut rates from 4.5 per cent to just two per cent, marking the largest single base rate cut it has made since gaining independence in the process.

Some analysts are pessimistic about the effect it will have on housing transactions, however, as many potential buyers will still be concerned about other factors such as job security.

Louise Bond, personal finance manager at uSwitch.com, suggested that the cuts would benefit homeowners most, perhaps making homeownership more attractive.

"With annual savings of up to £3,105 on the average tracker mortgage, people who can maintain their previous mortgage repayments should consider overpaying to reap the longer term rewards."

With lower average house prices and falling interest rates there will at least be a small number of interested parties now seriously contemplating buying a property.

Anybody hoping to buy a home should check online first, in order to see if a property can be purchased without the use of expensive estate agents.


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