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Tracker attraction predicted to drop

Tracker attraction predicted to drop

Category: Mortgages

Updated: 22/01/2010
First Published: 22/01/2010

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 It is now over 6 months old so the content may be out of date.
Homeowners looking to remortgage in the coming months are set to shun tracker rate deals, new research has revealed.

More than 880,000 mortgage deals will come to an end over the coming six months, equating to almost 5,000 each day, according to Santander.

However, as expectations of a rise in base rate heighten, only 13% of those due to remortgage said they would opt for a tracker mortgage, compared to 33% just two months ago.

Meanwhile, the amount likely to go for a fixed rate mortgage deal has increased from 20% to 23% over the last month, half of whom said they favoured a two year fix rather than one for three or five years.

The majority of those surveyed said a good rate would most influence their decision over which deal to take.

One in ten said the opportunity to make under or overpayments was most important.

"Borrowers have seen a large number of highly competitive fixed deals come on to the market recently and with many commentators predicting a base rate rise this year, homeowners now seem more inclined to play it safe with a fixed rate deal," said Phil Cliff, the bank's director of mortgage marketing.

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