Is the Best Tracker Mortgage really your best option

News about the Best Tracker Mortgage

Whatever the Bank of England base rate is set at, a tracker mortgage is usually set higher but set lower than the standard variable rates.

When the mortgage interest rate is low this is excellent news, like now, it’s actually at an all time low, so you probably have the best tracker mortgage ever and as the interest rates go down then so does your tracker mortgage.

For those of you with best tracker mortgage now are in a real win situation over all those people with a long term fixed rate mortgage as these folks will be still paying a much higher mortgage rate and may be struggling in today’s economic climate.

As tracker mortgages follow the bank of England base rate and go down to an all time low as they are at the moment, you have to be prepared for when they go up as they surely will in time, imagine how much more you will be paying if the base rate goes up to 5 or 6 percent or even higher.

Mortgage companies can sometimes let you change to a fixed rate mortgage rather than stick to your tracker mortgage and not even give any payment penalties as some mortgage companies will require a fee for this service and this could be a gamble that could pay off when the rates go up again, and they are bound to.

You must remember that your monthly payments will go up with your tracker mortgage as the base rate rises so this can be a drawback with these types of mortgage and the margin between the rate being tracked and your rate can be changed by some mortgage lenders.

There is something called a collar, meaning the mortgage you are paying will never drop lower than a pre-determined level so check this with your lender.

8th October 2010
The actual cost of the tracker mortgage was recently slashed by 0.41% by the Barclays Woolwich confirming their commitment to the housing industry.

Good news for home owners in the UK, the news comes as Barclays Woolwich are reducing the cost of a range of their deals after they announced that they have exceeded £100bn worth of mortgage lending in total.

Since 2007 when the market took a turn Barclays Woolwich has advanced around £55bn, this is a staggering 42% with their overall lending compared to an average increase of 3.5% across the industry, something of an achievement.

Barclays Woolwich are lending more to home owners and are fully commited to the UK market even more than ever before and have adapted and evolved their mortgage range to ensure they meet the borrower’s needs and provide long term value.

Tracker mortgages cost less now than ever (UK)
At the beginning of 2010, the best tracker mortgages following the Bank of England Base rate were at a record low as competition in the market started to pick up a little.

However, the tracker mortgage market, according to moneysupermarket.com has been hit the worst with Money supermarket have indicated that the tracker mortgage has been hit the hardest with the availability of these trackers falling to more than 80% since July last year.

Getting the best tracker mortgage now could be considered a very wise choice, especially now as the rates are so low, although with this low base rate they will have to go up so you have to think, will your tracker mortgage still be the best thing you ever did in a couple of years from now, only time will tell.

With the current low base rate the tracker mortgage is the choice of many but there are a variety of different types of mortgage that are also worth checking out.

You could go for a capped mortgage, a fixed rate or the standard variable mortgage and don’t forget about the Interest only mortgage, this can be a great idea if money is tight as you payments will drop considerably with one of these mortgages, although you won’t be actually paying anything off.

Read more about Mortgages at our Mortgage Comparison Sites Website.

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