Greater appetite for trackers

Tracker rate mortgages are increasing in popularity among first-time buyers, it has been claimed.

The Council of Mortgage Lenders (CML) stated that predictions of future cuts in the base rate are leading to a “greater appetite” for the products, whereas first-time buyers have traditionally opted for fixed-rate deals.

However, Sue Anderson, spokesperson for the organisation, stated that there is not a “one-size fits all solution” for first-time buyers and that the best mortgage product depends entirely on individual circumstances.

She said the situation is growing more complex as buyers are attempting to make predictions about the future of the base rate.

“People need to recognise their own attitude to risk and the risk of rates moving either in their favour or against them and the extent to which they want absolute certainty about their level of outgoings,” she said.

According to the CML, fixed-rate mortgages represented 57 per cent of all loans during January, compared to 77 per cent six months previous.

© Adfero Ltd

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