News Tag: tracker
February 10, 2010
Tracker rates fell to record lows in January, Bank of England statistics have revealed.
For those with a 25% deposit, the rate on the average tracker deal declined to 3.63%, down from 3.92% in December.
The shift indicates that competition is hotting up, given that the base rate has now been maintained at 0.5% for eleven consecutive months.
Furthermore, the average rate on a two-year ...
Tracker rates hit record lows
by Gill Montia
January 23, 2010
Both Northern Rock and the Post Office have launched new mortgage deals with lower rates.
The Post Office has cut the cost of its Bank of Ireland lifetime tracker loans from 3.29% to 2.99%, or from 3.59% to 3.49%, dependent upon the loan-to-value ratio.
Bank of Ireland has also reduced the price of its five-year fixed-rate offering by 0.5% ...
Mortgage rate cuts from Post Office and Northern Rock
by Gill Montia
December 10, 2009
The Council of Mortgage Lenders (CML) has reported that approvals for house purchase loans increased to 55,000 in October, the highest level since December 2007 and up from a January 2009 low of 23,000.
However, October remortgaging approvals remained static on a month earlier at 33,000 and apart from a total of 30,000 in August, remortgaging is at its ...
House purchase loans at highest level for two years
by Gill Montia
September 17, 2009
Woolwich has announced its second round of mortgage rate cuts this month.
From today, the lender is introducing a one-year tracker mortgage at 1.98% for a 60% loan-to-value (LTV) deal, which comes with a £999 fee.
The Barclays-owned firm is also cutting rates on its two-year 70% LTV fixed-rate deals with a £999 fee, to 3.99%; or 4.09% with a reduced fee of ...
Woolwich launches one-year tracker at 1.98%
by Gill Montia
September 1, 2009
Mortgage borrowers are becoming less fearful of interest rate rises and opting for variable rate loans in larger numbers.
July figures from John Charcol show that while fixed-rate deals retained their popularity, variable-rate mortgages, such as tracker or discounted loans, made up 35% of all mortgages arranged through the broker, compared to 17% of the market in June.
The swing reflected a sharp rise ...
Variable rate mortgage stages comeback
by Gill Montia
August 29, 2009
Borrowers seeking fixed and tracker rate mortgages are in for a pleasant surprise because arrangement fees have fallen by around 25% in the past 12 months.
Research by moneysupermarket.com has revealed that the average two year fixed-rate deal now comes with a typical fee of £957, down 30% the £1,243 average charge this time last year.
In addition, the average fee ...
Arrangement fees dive on fixed and tracker deals
by Gill Montia
August 4, 2009
Nationwide has cut rates by up to 0.5% on some of its fixed-rate and tracker mortgages, from today.
Reductions have been applied to its two-year and three-year fixed-rate loans and two-year tracker deal, both for new customers and remortgagers.
However, also from 4th August the building society will be retaining £99 of its existing reservation fees, having introduced a non refundable booking fee ...
Nationwide cuts rates by 0.5%
by Gill Montia
July 23, 2009
Last month saw homebuyers and remortgagers opt for fixed-rate loans as never before.
According to mortgage broker, John Charcol (JC), the proportion of customers choosing fixed-rate deals rose to a record 83.1% in June and the firm's mortgage activity monitor also showed the average take-up at 81.2% over the past four months.
However, the broker believes the figures could have peaked because of ...
Fixed rate popularity sees June peak
by Gill Montia
June 29, 2009
The tracker versus fixed-rate dilemma that currently faces homeowners has been investigated by moneysupermarket.com, with the odds laid out as follows:
Mortgage borrowers on tracker rates saw their monthly repayments fall substantially, as the base rate plummeted to 0.5%.
However, further falls in the base rate are unlikely whereas a rise is inevitable, probably by the end of the year.
This prospect makes the idea of a ...
Tracker/fixed-rate dilemma unravelled
by Gill Montia
June 10, 2009
Latest figures from the Bank of England show that banks and building societies are raising the cost of their variable-rate mortgage deals.
The news is disappointing, given that the base rate was held at an all-time low of 0.5%, in June and three month Libor, the rate at which most lenders borrow to fund their mortgage businesses, has fallen.
...
Lenders push up tracker rates despite base rate freeze
by Gill Montia
June 3, 2009
Britons appear confident that the Bank of England's base rate has bottomed out at 0.5% and are therefore favouring fixed-rate mortgage deals.
According to Abbey's mortgage index, last month 60% of homeowners preferred the idea of a fixed-rate home loan, on the basis that it could offer protection from future rate rises.
The figures compares with 52% favouring a ...
Homeowners look to fix as enthusiasm for SVRs wanes
by Gill Montia
April 26, 2009
Alliance & Leicester (A&L) has launched a two-year tracker at 2.45% above base rate (currently 2.95%).
The mortgage is available to both homebuyers and remortgagers who can stump up a deposit of at least 25%. It comes with a fee of £499 and the maximum loan size is £250,000.
According to the lender's director of mortgages, Nici Audlam-Gardiner, research shows that among remortgagers, ...
A&L launches two-year tracker at 2.95%
by Gill Montia
March 31, 2009
Nationwide has reduced the cost of a number of its fixed-rate and tracker mortgages by up to 0.25%.
The lender is offering a two-year fix from 3.78%; three-year from 4.28% and five-year from 4.78%, from 1st April.
All the new loans have a £299 reservation fee for existing customers and a £995 reservation fee for new borrowers.
The building society also has a ...
Nationwide reduces tracker and fixed rates
by Gill Montia
March 17, 2009
Nationwide Building Society is increasing rates on some of its mortgage deals by up to 0.3%.
From 18th March, remortgagers with a 40% deposit will pay interest at 3.93% for a two-year tracker, up from 3.63% previously.
Homeowners with only 25% of equity in their properties will be charged at 5.08% for a similar deal, while existing Nationwide customers who need to borrow ...
Nationwide increases tracker rates
by Gill Montia
February 20, 2009
The resistance of mortgage lenders to pass on cuts in the base rate is illustrated by new research from Moneyfacts.co.uk.
The financial website found that Standard Variable Rates (SVRs) are down by an average one-third of the total amount shaved off the base rate in recent months.
The firm's analyst, Michelle Slade, points out that customers with new tracker rate loans ...
Lenders’ SVRs reflect one-third of base rate cuts
by Gill Montia
January 29, 2009
Moneysupermarket.com is warning homeowners that margins on tracker mortgages are rising.
With the Bank of England base rate at an all-time low, tracker deals have become increasingly popular.
However, lenders have been busy upping their margins on trackers; according to the price comparison website, margins have more than tripled in the past three months.
Research shows that in October of last ...
Trackers become “handle with care” loans as margins rise
by Gill Montia
January 13, 2009
Latest figures from the Bank of England show that rates on new tracker and standard variable rate loans have fallen in recent weeks, however those with less than a 25% deposit remain locked out of the best deals.
Tracker loans are linked to the base rate and at the end of December, the cost of the average two-year tracker ...
Tracker and SVR mortgage rates fall to five-year low
by Gill Montia
January 12, 2009
The RBS Group has announced that it will only pass on last week's Bank of England base rate cut to some customers.
The banking group, which includes NatWest and the Royal Bank of Scotland, said those on tracker mortgages and small business with variable rate overdrafts would benefit from the full 0.5% cut.
However, individual mortgage holders on the standard variable ...
RBS fails to pass on full rate cut
by David Masters
December 21, 2008
During the past 12 months, lenders have steadily increased their margins on fixed and tracker rate mortgages, according to research by financial website, Moneyfacts.
Over the past year, the Bank of England's base rate has fallen from 5.5% to 2%.
In addition the cost of borrowing on the money markets has decreased: three month sterling Libor, the rate at ...
Lenders’ margins take away the shine for new borrowers
by Gill Montia
December 9, 2008
Lloyds TSB and its mortgage lending arm, Cheltenham & Gloucester (C&G), have launched a range of new tracker deals, with rates starting at 3.69%.
Two-year loans with a maximum 60% loan-to-value (LTV) ratio are available in the lender's All Weather range as follows: 4.09% (base rate +2.09) £1995 fee applies; 4.19% (base rate +2.19) and a £995 fee.
There is also a full-term ...
Lloyds TSB launches new tracker range
by Gill Montia
