First-time buyer shift to tracker mortgages
by Gill Montia
Research by the Council of Mortgage Lenders (CML) shows that first-time buyers are increasingly opting for tracker mortgages.
Sue Anderson, a spokesperson for the Council, says that the security offered by a fixed-rate mortgage is becoming less attractive to some borrowers as there is “some anticipation that rates may fall again this year”.
Borrowers opting for a tracker mortgage stand to benefit if the Bank of England cuts interest rates again later this year.
Ms Anderson described the situation as “complex” and points out that first-time buyers do not form a uniform category.
However, see believes those seeking to purchase their first property are looking for a “trade-off between flexibility and certainty, in particular with relation to interest rates”.
Meanwhile, a survey conducted by Abbey Mortgages has revealed that four times as many potential first-time buyers are spending some of their deposit savings, compared with this time last year.
The research shows that 42% of those hoping to get a foot on the property ladder have spent a combined total of £1.9 billion from their nest eggs.
Fifty-three per cent of those questioned cited a rise in the day-to-day cost of living as a major reason for raiding their funds.
Discuss this in the Finance Markets forums
Story link: First-time buyer shift to tracker mortgages
Add to Bookmarks:
Related financial stories to: First-time buyer shift to tracker mortgages
- Tracker mortgages provide strong competition for fixed-rates
- First-time buyer mortgage approvals fall 48%
- Fixed-rates mortgages top June poll
- Nationwide raises interest on fixed-rate and tracker deals
- Mortgage lenders shift to uncapped arrangement fees
- Tracker loans reappear
- Interest only mortgages increase
- Nationwide ups tracker margins
- RICS and TUC bemoan first-time buyer plight
- First-time buyer stamp duty doubles in five years
Previous: « Woolwich launches 5.29% ten-year fix
Next: Bank of England releases funds to calm markets »
Visited 1546 times, 3 so far today