Comments on: Tracker mortgages – the way to go?

By: Carl

Carl — Wed, 02 Dec 2009 14:10:31 +0000

Wish i had taken a tracker mortgage out when i had chance a few years ago. Think the time has gone now unfortunately for tracker mortgages, though i suppose they may return in the future

By: Will interest rates reach zero percent?

Will interest rates reach zero percent? — Fri, 06 Mar 2009 10:21:44 +0000

[...] good news to see their mortgage re-payments cut further and recently discussed in an article ‘Tracker mortgages the way to go‘. It is an interesting situation in that a simplistic view of some past mortgage deals, means [...]

By: Matt

Matt — Wed, 24 Dec 2008 14:05:51 +0000

Well, I’ve now had a letter from my lender, confirming that I’m getting the full 1% reduction as announced in early December, so therefore my rate will be 2.55% from January 2009. If they do have a “collar”, I haven’t reached it yet…!!!

Rumours are that another cut in the Base Rate is expected in January – the RICS is expecting a further cut of 1% overall in the 1st quarter of 2009, so I’m thinking 0.5% in January, and we’ll then see what happens from there…..

By: C Johnston

C Johnston — Tue, 23 Dec 2008 13:05:21 +0000

0.55% above base rate is an excellent deal.

I’m currently on 0.65 below base rate until 17 Feb 09. So my rate at the moment is 1.35%. Our payments have fallen by just over £200 in the past year.

After 17 Feb our rate goes to base rate plus 1.99%. At the time we took out the deal this rate appeared OTT, but our plan was to jump to another deal. 1.99% over now looks to be a good deal too – especially when you factor in fees ect to re-mortgage. No-one can match that rate (LTV currently 76% ish).

By: HIP-Consultant.co.uk

HIP-Consultant.co.uk — Thu, 18 Dec 2008 16:57:00 +0000

Great news Matt. That was an astute decision and great to hear people actually benefiting from the rate cuts. Base Rate + 0.55% was a particularly good deal to secure. When a deal of this kind will return would be hard to say.

The collar’s existence or not can often be found in the mortgages’ key facts documentation or alternatively a quick call to the lender will confirm whether there is one attached to the mortgage or not.

It will be interesting to see what fixed rate deals are offered in the New Year.

By: Matt

Matt — Thu, 18 Dec 2008 09:34:35 +0000

I have a tracker mortgage, and have therefore benefitted handsomely from the Base Rate cuts this year, and I am now eagerly awaiting the letter from my lender to confirm the cut applied at the start of December, to take effect in January.

The tracker I’m on is Base Rate + 0.55%, taken out 3 years ago (it was at Base Rate for the first 12 months). My December payment (at 3.55%) was £43 less than I paid in October (at 5.55%), and assuming I will get the full 1% cut as announced this month – dependant on any “collar” applied by my lender – then January’s payment should be down by another £21 (ish). All particulary handy, as I was made redundant 6 weeks ago….

The indication is that rates will probably drop further in the New Year, so providing there isn’t a collar on my mortgage, then I will see further cuts in my monthly repayments. Of course, eventually the rates will start to go up again, at which point I will then look to change to a fixed-rate mortgage, which in theory will be at low rates – it will be a case of catching the mortgage market at the right time just as the Base Rate (and therefore my Tracker) starts to go up, but before the low rates on fixed products start going too high…