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Product focus: Variable rate tracker mortgages

Product focus: Variable rate tracker mortgages

Category: Mortgages

Updated: 06/06/2011
First Published: 06/06/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Variable tracker rate mortgages follow movements in the Bank of England base rate.

Base rate is predicted to remain at 0.50% for the foreseeable future, however, borrowers on a variable rate deal must be aware that their monthly repayments will increase in the event of an rate rise.

Here is a selection of some of the current best tracker rate mortgage deals.

first direct

  • This product offers a rate of 1.99% for two years (BBR + 1.49%).
  • The maximum loan-to-value is 65% and first, second time and remortgage customers can borrow up to £1 million.
  • An arrangement fee of £999 is payable.
  • Remortgage customers are offered the incentive of free legal fees, while all borrowers have the option to make overpayments.

ING Direct

  • This two year tracker offers a rate of 2.04% for two years (BBR + 1.54%).
  • Available to first, second and remortgage borrowers, this product's maximum loan-to-value is 60% and has borrowing amounts between £50,000 and £1 million.
  • A fee of £945 is payable.
  • Remortgage customers can enjoy the incentives of a free valuation and free legal fees.
  • Flexible features of overpayments and underpayments are also offered.


Skipton
Building Society

  • Skipton Building Society's two year tracker offers a rate of 2.28% for two years (BBR + 1.78%).
  • The maximum loan-to-value is 60%.
  • First-time buyers can borrow up to £250,000, while second time buyers and remortgage customers have a maximum borrowing amount of £1 million.
  • A fee of £995 is payable.
  • Remortgage customers are offered incentives of a free valuation and free legal fees.
  • Borrowers can also make overpayments and take payment holidays if they wish.
Find the best mortgage for you - Compare variable rate mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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