Tracker customers ‘wasting record low rate’

The majority of customers who have a tracker account are passing up a golden chance to cut their overall payments down substantially, research has found.

A study by consumer website unbiased.co.uk discovered that only 20 per cent of mortgage holders have maintained their payments in the wake of the spate of cuts to the Bank of England base rate between October and March.

Overall, 53 per cent are doing nothing to take advantage of the reduction to a record low of 0.5 per cent, with 24 per cent of people using the saved money to pay off other debt and seven per cent building up their bank balance.

However, 19 per cent are simply using the extra to treat themselves.

Those facing money issues may be able to benefit from a 0.5 per cent base rate for some time yet as inflation continues to fall.

Official figures revealed that the consumer prices index figure for August was 1.6 per cent, compared with 1.8 per cent in July.

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