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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.
Trackers get less appealing
Article Category: Debt Management Help and Advice
Tracker
mortgages are being withdrawn or getting more expensive, research has shown.
With the credit crunch continuing to ripple through the
mortgage market, lenders are increasing the loading on their tracker products, while others are closing them to new customers.
A year ago, a homeowner could expect to find a deal tracking between 0.5 per cent and 0.75 per cent above the base rate.
Now, the average has increased to around 1.17 per cent, wiping out the 0.5 per cent drop in interest rates since December.
"With banks and building societies trying to repair their balance sheets in an atmosphere of financial mayhem, it is hardly surprising it is the poor consumer who is caught in the middle and is having to pay more for less choice," said David Black, principal consultant at Defaqto, the financial analysis firm behind the figures.
"It is almost as though we are going back to the days when lenders felt they are doing you a favour by offering you a mortgage."
The credit crunch has made it harder for banks and building societies to raise money, which means higher repayment rates and tighter conditions for borrowers.
With more than one million homeowners due to come off fixed rate mortgages this year,
debt management experts are likely to see a rise in demand for their services.
For more information about debt management call our advisors on 08000 122 118 for FREE, no obligation help and advice.
Created on 13/06/2008 10:16:18
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