Mortgages Uncovered

The website Moneysupermarket.com which is the finance price comparison website, found that tracker mortgages, which track the Bank of England base rate, are making a definite comeback and look best value for money.

Research the website found that the gap in cost between a 2 year tracker mortgage and 2 year fixed mortgage has widened in the favour of the tracker deal which is currently at an average of 5.9% in comparison to 6.45% for a 2year fixed rate mortgage.

The moneysupermarket.com has a weekly credit crunch monitor which in this case showed there was little difference between the popularity of 2 mortgages at the beginning of June. However, there is now a 0.5% gap appearing.

The cost to take out the average tracker mortgage is currently at its cheapest level since March ’08; money supermarket is still reminding consumers to continue to scour the market for the best mortgage deals.

Louise Cuming who is head of mortgages at moneysupermarket said that it is understandable that consumers will turn to fixed rate deals in the current climate of uncertainty. However, data shows that it is still essential for consumers to look at all mortgages on offer on the market when looking for a new deal.

With such instability in interest rates the tracker mortgages have been avoided but economists now believe that rates will remain on hold short term with a reduction in the medium term.
If the widely expected happens by the end of the year and interest rates get cut, tracker mortgages could be a lifeline to many.