7
Sep
Homebuyers given advice on choosing between tracker and fixed-rate
loans
Homebuyers sorting out the mortgage on a house for sale in the UK
have been given help with choosing between tracker and fixed-rate
loans.
Principality Building Society has recently launched a new mortgage
product, which is designed to take away this dilemma for future
homeowners.
The three-year Tracker Switch to Fixed product is available on a
variable rate (2.99 per cent at the moment), which is then
available to switch to a fixed-rate product at any time in the
future.
Homeowners who choose to keep their mortgage at a changeable rate
will then be able to swap to the firm's Standard Variable Rate loan
of 3.99 per cent.
Marketing director at Principality Building Society James Wright
said: "We recognise that the current climate coupled with
conflicting economic forecasts, pose a confusing set of
circumstances for borrowers."
This comes after chartered financial planner at Informed Choice
Martin Bamford predicted that the Bank of England base rate will
remain at 0.5 per cent "for at least the rest of this year" - which
will come as good news for homeowners with tracker
mortgages.