Over the past few years almost all mortgages have been set up on a fixed rate basis. We’re now seeing a return to the market of tracker and discount type mortgages.
Demand has increased the volume of tracker and discount rates available, with many mainstream lenders now offering competitive tracker rates and smaller, regional lenders offering discounted rates.
Many of the tracker type mortgages have low or zero early repayment charges, meaning that you could jump to a fixed rate if the market takes another turn. Equally, if the Bank of England base rate reduces you could be in for cheaper monthly payments, the downside of course, is that the opposite is also true, increased interest rates mean higher monthly payments.
Discounted mortgages work similarly to Trackers, except they mirror the lenders standard variable rate, rather than the Bank of England base rate. Lenders are not obliged to change their variable rate, even if the Bank of England reduces theirs. Most of these mortgages also have typical, like fixed rates, early repayment charges.
So, considering today’s fluctuating market conditions and the wide variety of mortgage products that are emerging, whether you’re a first-time buyer, a mover, a re-mortgager, or a landlord, it’s right to seek professional advice from an experienced, independent adviser. We’ll complete a full background brief with you and discuss your appetite for interest rate risk. We’ll also utilise our market leading technology to source the very best products available, and back that up with our award-winning service.
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Our Mortgage Advisers are available to discuss this or any mortgage matter, please contact us.
Charly Higman
Mortgage and Protection Director
