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Product focus: Variable tracker rate mortgages

Product focus: Variable tracker rate mortgages

Category: Mortgages

Updated: 12/01/2011
First Published: 11/01/2011

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 It is now over 6 months old so the content may be out of date.

Bank base rate has remained at 0.5% for over 20 months and many financial commentators have predicted that this historical low will remain during 2011. A large number of borrowers are therefore taking advantage of low variable rates rather than choosing fixed rate deals. Here is a selection of some recently launched variable tracker rate mortgages.

Royal Bank of Scotland

Royal Bank of Scotland's latest tracker range includes this deal at 2.69% (BBR + 2.19%) to 30th April 2013. The maximum loan-to-value is 75% and customers can borrow a minimum of £25,000. A fee of £999 is payable. Incentives of free legal fees and a free valuation are offered to remortgage borrowers. Overpayments of up to 10% of the outstanding balance can be made.

Coventry Building Society

Coventry Building Society's newest tracker deal offers customers 3.19% (BBR + 2.69%) to 31st March 2013. Customers can borrow up to 75% of the property value and a fee of £499 is payable. Incentives of a free valuation and free legal fees are offered to borrowers looking to remortgage. This product also offers all borrowers the flexibility to make overpayments and take payment holidays.

First direct

The latest mortgage product review from first direct saw reductions to some of its tracker rates. Its tracker rate of 2.59% (BBR + 2.09%) for two years offers a maximum loan-to-value of 75% and allows customers to borrow between £10,000 and £1m. A low fee of £99 is payable and incentives of a free valuation and free legal fees are offered to remortgage customers. There is also the option to make overpayments.

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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 Any products featured may be withdrawn by their provider or changed at any time.