There are more homeowners at present applying for tracker remortgages than fixed rate ones.
Online PR News – 16-November-2009 – – Homeowners wising to remortgage at present, whether it is on a like for like basis or as a means to raise capital are returning more and more to the tracker remortgage rather than the fixed rate mortgage product.
Up until the Bank Of England base lending rate was reduced to the historic low of half of one percent homeowners were almost equally divided between fixed rate and tracker remortgages.When the base rate became 0.05% it meant that the repayment between these two remortgage products became wider. Tracker remortgages track, ie. follow, the Bank Of England Base Rate and are therefore reasonable at present making the fixed rate considerably more expensive.
The rate for tracker remortgages start at 1.98% with The Woolwich at a maximum LTV of 60%, and the Alliance and Leicester have now launched a tracker remortgage and mortgage at 1.99% for those with a minimum 30% deposit. Fixed rate remortgages start at just over 3% , although fixed rates give the borrower confidence in these uncertain tmes that their mortgage or remortgage repayment will remain constant every month for a number of years. The mortgage and remortgage borrower has the choice of a cheap rate versus security.