Popularity of tracker deals rises

Brokers report that borrowers are moving to tracker mortgages at the highest rate in more than a decade. Borrowers are betting recent interest rate rises will reverse next year and they will be able to lock in a fixed rate lower than today’s prices. The average two-year tracker rate is 4.10%, compared with a typical two-year fixed rate of 6.42% – equal to a £273 monthly saving on a £200,000 mortgage. Nathan Reilly, of Twenty7tec, said: “It seems [borrowers] are keen to see how the market settles and are therefore attracted by the additional flexibility a tracker could offer".

The Daily Telegraph (08/11/2022)