1
Sep
Tracker mortgages are "well worth considering"
It is unsurprising that many people are choosing variable deals
over fixed rates because the difference between the two is now
"quite substantial", according to one property expert.
Peter O'Donovan, head of mortgages at Bestinvest, a firm of IFAs,
said that those who are able to choose between paying 2.75 and
three per cent or paying over five per cent should bear in mind
that it is "well worth considering" the difference between the
tracker and fixed-rate deals.
His comments follow the publication of new figures from John
Charcol, which shows that the share of the mortgage market taken up
by variable rate deals has more than doubled in the last
month.
"I have noticed an increase in tracker rates coming up on the
sourcing systems," said Mr O'Donovan, adding that people would
rather take the risk of staying at a reasonably low rate with a
tracker mortgage for a longer period of time than taking the
security of a fixed rate "because it is overpriced".
