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First-time buyers eye cheaper tracker mortgages as fixed rates rise
['Ed Magnus', 'Senior This Is Money Reporter']
Money | Mail Online
The change in preference comes amid fixed rate mortgages moving higher in recent weeks.
Moneyfacts says the proportion of first-time buyers looking at trackers and discount rates remained below 10 per cent throughout the spring before climbing as fixed mortgage rates increased.
If the base rate rose to 4 per cent, though, their mortgage rate would rise to 4.3 per cent.
Or if the base rate is cut to 3.5 per cent the tracker rate drops to 3.8 per cent.
Tracker mortgages also have a rather unique feature in that they tend to come without early repayment charges.