Tracker Mortgages

"To say the mortgage market has been an enigma of late would be an understatement of epic proportions. With news, most of it negative, emanating on a daily basis, borrowers could be forgiven for not knowing whether to fix, track, cap or offset.

Legal & General Mortgage Club has launched an exclusive two-year tracker at 5.94% (base plus 0.94%), provided by Halifax.

On 4 August, Legal & General Mortgage Club will be launching an exclusive two-year tracker at 5.99% (base plus 0.99%), provided by Scottish Widows Bank.

Sean Gardner, Director, MoneyExpert.com, said: "With higher mortgage fees very much in the spotlight this new offer from NatWest is certainly eye-catching.

Homeowners are being reminded to scour the entire product range when looking for a new mortgage, as analysis from moneysupermarket.com has shown that the average two-year tracker is looking increasingly better value.

The 3 year step down tracker mortgage is completely fee-free, meaning there are no set up fees, no legal, valuation or CHAPS fees to pay for a standard re-mortgage.

Norwich and Peterborough Building Society (N&P) is offering a market-leading three year base rate tracker mortgage at Bank Base Rate (BBR) plus 0.70% - available now via its branches and Contact Centre.

John Charcol has launched an exclusive range of large loan 2 year tracker mortgages giving clients the option to trade off the interest rate and the fee. The cheapest rate available is Bank rate - 0.01%, giving a current pay rate of 4.99%, and this deal carries a 2.75% arrangement fee.

Alliance & Leicester is launching a new two year tracker mortgage product which will be available from Friday 27 June 2008. The product will be available to both new and existing customers via brokers, branches or Mortgage Direct.

Commenting on the Co-Op's new mortgage deal, Louise Cuming, head of mortgages at moneysupermarket.com, said:

The Co-operative Bank has just launched an exclusive market leading fee free 3-year tracker mortgage, which will be available to its current account customers.

Abbey is cutting rates on its two-year tracker and flexible mortgages by 0.1 per cent in response to the Bank of England's announcement today.

In the days before the credit crunch, people took out mortgages that tracked the Bank Base Rate because they thought the rate would drop in the future.

Lenders are continuing to increase the margins on their tracker rates at present, although the good news for borrowers is that more competitive sub 5% fixed rates are coming to the market, some now available with flat fees below £1,500.

With bank rate predicted to drop in February and the current lack of many competitive fixed rates, many people’s product of choice is a tracker with no Early Redemption Penalties.