According to moneyfacts.co.uk, the average two-year tracker mortgage has fallen for the third month in a row, down to 1.92%, the lowest level since the rate rise in November 2017.
The new figures are a snippet from the forthcoming Moneyfacts UK Mortgage Trends Treasury Report and show a falling trend in average tracker mortgages, as lenders are offering ever-more competitive tracker deals.
According to Moneyfacts finance expert, Charlotte Nelson “competition in the fixed rate market has reached new heights and providers are considering the variable rate sector as an avenue to attract new customers.”
Managing Director at Visionary Finance, Hiten Ganatra says that “whilst tracker mortgages are very attractive, it is important for mortgage customers to understand the implications of opting for a tracker rate deal.”
Hiten added, “Our advice for homebuyers and remortgage customers is to discuss your circumstances with one of our mortgage advisers who will provide balanced reasons for why you should or shouldn’t opt for a tracker rate deal.”
Analysts are predicting a rate rise in 2018, likely to 0.75%, as mixed economic data is making it more difficult for the Bank of England’s Monetary Policy Committee to take decisive action. “Fixed rate mortgages will help to hedge against this impending interest rate increase, so it is worth considering locking in the mortgage rate whilst there is still strong competition” Hiten concluded.
If you are seeking to remortgage a property, please contact our team on 01908 465100 and a member of our team will discuss your options with you.