'Good news' for homeowners on tracker mortgages

Posted: 14 Sep 2009 11:24:06 GMT

The recent Bank of England interest rates will have benefited a number of property owners on tracker mortgages, according to the director of independent financial adviser group MyMortgageDirect.

Catherine Hearnden said that there are homeowners out there who are paying "silly money - virtually nothing" for their home loan.

"They are going to find that as these rates run out, they are going to have to step it up a bit, but it still won't be as much probably as they started off with at the beginning," she added.

Her comments came after the Bank's monetary policy committee announced that interest rates will remain at 0.5 per cent for September.

Thursday's decision to keep the cost of borrowing at this record low level marked the sixth month in succession that the base rate has been frozen - it was brought down to 0.5 per cent in March 2009.

It was only two years ago that interest rates reached 5.75 per cent.


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