19
Mar
Prospect of rate cuts 'results in tracker popularity'
Tracker-rate mortgage deals are growing in popularity for
first-time buyers because they believe interest rates could drop
again in the near future, it has been claimed.
Sue Anderson from the Council of Mortgage Lenders (CML) stated that
while in the past such buyers may have headed towards fixed-rate
deals, there is more of an "appetite" for tracker products in the
current climate.
But it is hard to put everybody in the same bracket, she argued,
because consumers need to analyse their personal situation to see
what mortgages are correct for them.
"People need to recognise their own attitude to risk and the risk
of rates moving either in their favour or against them and the
extent to which they want absolute certainty about their level of
outgoings," she commented.
And while not all consumers are the same in terms of their needs,
she added, at present key aspects mortgage holders will be looking
for include "flexibility and certainty".
Last month, the CML documented that homeowners have started to
gravitate more towards tracker deals.