Fixed rate mortgages vs tracker mortgages
Fixed rate mortgages and tracker mortgages are the most popular loans on the market. Whilst all borrowers seek the best mortgage rate, there remains a lot of guesswork regarding which one is right. If economists can't agree on the direction of interest rates, what chance does a layman have?
Are Fixed Rate Mortgages or Tracker Mortgages More Popular?
Fixing a rate at a high level can be frustrating when interest rates start to come down. Similarly, tracker rates can prove expensive when interest rates start to climb to combat inflationary pressure. Which type of loan is preferred by borrowers?
Data provided by the Council of Mortgage Lenders show that fixed rate mortgages account for 70% of all loans taken out in Britain. This demonstrates that homeowners prefer certainty. They...