Tracker mortgages ‘bouncing back’

Tracker mortgages are starting to become more popular again, it has been stated.

Legal and General’s director of mortgages Ben Thompson said the major base rate cuts of last year saw lenders put their starting rates for the products up, with the result being that fewer people opted for them.

However, he stated, the third quarter of this year has shown this to be changing.

“Our figures show that almost one in five mortgages applied for through our Mortgage Club were tracker rates, up from 12 per cent in the previous quarter,” Mr Thompson noted, adding that he expects numbers to rise further by the end of 2009.

Ray Boulger, a spokesman for mortgage brokerage John Charcol, said that a lack of base rate changes has not prevented some recent positive developments in the mortgage market.

He said a number of lenders have issued new, cheaper products in the wake of falls in interbank lending rates.

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