Tracker rates hit record lows

by Gill Montia

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 fix fell slightly to 3.97% last month, while the typical five-year fixed-rate saw a 0.12% decline between December and January, to 5.55%.
The outlook is promising for all but those with small deposits, who are stuck with substantially higher rates.
However, Countrywide Mortgages has reported that lenders have recently launched a batch of new high loan-to-value (LTV) deals, aimed at first-time buyers.
According to the broker, a number of high LTV home loans appeared its top ten mortgages list in January, with four of the deals sporting LTVs of up to 90%.
Discuss this in the Finance Markets forums
Story link: Tracker rates hit record lows
Financial Services:
Related financial stories to: Tracker rates hit record lows:
- Tracker mortgage borrowers wasting low-interest opportunity
- Copper makes record gains as supplies at record lows
- Lloyds TSB and Woolwich up tracker rates
- Tracker mortgages provide strong competition for fixed-rates
- Nationwide and Abbey reduce mortgage rates
- Tracker rates stuck in the past
- Tracker rates fail to reflect base rate cuts
- Lloyds TSB and C&G cut fixed and tracker rates
- A&L launches two-year tracker at 2.95%
- Nationwide increases tracker rates
Next: Official rate of inflation hits 2.9% »
Visited 1913 times, 1 so far today
No Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Tags: average, Bank of England, fixed-rate, high loan to value, January, tracker, two year