The Times - Tracker mortgages go up as savers’ returns fall yet again
Mortgage brokers are warning that borrowers should not assume that their mortgage will get cheaper, even if the Bank of England decides to cut rates next month.
The article highlights that Barclays and NatWest's tracker rates are linked to the internal systems.
Aaron Strutt, of the broker Trinity Financial, told The Times: “I think it is unlikely that, if the official base rate was lowered, they wouldn’t pass on the full reduction, but the thing is their trackers are not technically linked to anything else.
He adds: One of Trinity's clients has just remortgaged their five-year fix to a two-year deal. “Even with the early repayment charges it still made sense to repay and switch deals. Over the past few years mortgage rates have come down so rapidly that best-buy deals have quickly become uncompetitive when compared to new customer rates.”
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