The Best Tracker Mortgage or Fixed Rate

A tracker mortgage is usually a little higher than the bank of Englands current base rate but it will be lower than the current variable rate.

When the mortgage interest rate is low this is great news for everyone, like now, it's actually at an all time low, so you probably have the best tracker mortgage ever and as the rates of interest fall then so does your tracker mortgage.

The people with best tracker mortgage now are in a real win situation over all those people with a long term fixed rate mortgage as these people will be still paying a much higher mortgage rate and may be struggling in today's economic climate.

A few mortgage providers do allow you the to choose to transfer your tracker mortgage to a rate that is fixed, known as the fixed rate option and avoid any fees for changing over and this could be a worth while consideration if the rates move up.

You must remember that your monthly payments will go up with your tracker mortgage as the base rate increases so this can be a drawback with this particular type of mortgage and the margin between the rate being tracked and your rate can be changed by some mortgage providers.

There is something called a collar, meaning the mortgage you are paying will never drop lower than a certain level so check this with your lender.

8th October 2010
The actual cost of the tracker mortgage was recently slashed by 0.41% by the Barclays Woolwich confirming their commitment to the housing industry.

This is great news for UK home owners, the news comes as Barclays Woolwich are slashing the cost of a range of their deals after they announced that they have exceeded £100bn worth of mortgage lending in total. From when the mortgage industry took a turn for the worst back in 2007 Barclays Woolwich has advanced around £55bn, this is a staggering 42% with their overall lending compared to an average increase of 3.5% across the industry, something of an achievement.

Barclays Woolwich are lending more to home owners and are fully commited to the UK market even more than ever before and have adapted and evolved their range of mortgages to ensure they meet borrower's needs and provide long term value.

At the beginning of 2010, the best tracker mortgages following the Bank of England Base rate were at a record low as competition in the mortgage market started to pick up a little.

However, the tracker mortgage market has been hit the worst according to moneysupermarket.com with the number of available products falling over 80%Money supermarket have indicated that the tracker mortgage has been hit the hardest with the availability of trackers falling to more than 80% since July last year.