Biggest lenders pull tracker mortgage rates

by Aaron Strutt

Jun 09 2014

Halifax and Lloyds recently pulled their tracker rate mortgages suggesting they were not competitive enough when compared to their fixed rates.

The vast majority of borrowers are taking fixed rate mortgages at the moment, although some of the lenders are starting to offer much more competitive tracker rates. For example, Santander’s two-year trackers are 0.5% cheaper than their best fixes at the moment.

A Lloyds spokesman told The Daily Telegraph: “We would not advise customers to take a tracker mortgage that is priced similarly to a fixed-rate option, as there is a risk that they could end up paying more. Therefore, in the short term, we have removed tracker products from the range.”