Mortgage providers re-launch tracker deals

Findings from uSwitch.com have revealed that 16 of the UK's leading mortgage providers have re-launched tracker deals at an average rate of 5.23 per cent APR.

The figure is 2.24 per cent above the current base rate of three per cent and above the LIBOR rate of 4.09 per cent.

Commenting on the findings, Louise Bond, personal finance manager at uSwitch.com, said that new tracker mortgage customers could expect to save £1,000 a year on the average tracker rate.

"For people who are brave enough to enter the housing market in this climate, tracker rates should be considered as these rates are only going to go down over the coming months," she said.

Tracker mortgage customers with a new deal will save £93.37 a month, which amounts to an average annual figure of £1,120.

Last month, the average two year tracker rate stood at 6.26 per cent APR, prompting uSwitch.com to say that the decrease looked "promising".

Findings from insurance group LV revealed that nearly half of the UK's 2.9 million interest-only mortgage customers have no specified investment vehicle in place to pay off the capital on their loan.

Mortgages News posted on 20/11/2008 17:00:29