We don't like tracker mortgages

We dislike base rate tracker mortgages with penalties in this type of market. As we move back into a period of rising interest rates we would recommend that borrowers look closely at the rate they are currently paying.

For security borrowers may wish to opt for a fixed-rate loan to protect themselves against future rate rises. However, if considering a 'tracker' rate homeowners should resist headline rates which track the base rate itself but have redemption penalties during the term.

Instead, we urge borrowers to consider a tracker discounted against the lender's SVR (Standard Variable Rate). While SVRs will climb to reflect the base rate changes historically, they have not risen as quickly as the base rate.