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Is it unwise to take a tracker mortgage (+1.18%) which will not reflect any BOE Base Rate cut below 2.75%

joanne86
by joanne86 29 October 2008  |  Comments 4 comments  |  Love Love  0 loves

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Comments (4)

  • SGUser
    Love rating 1
    SGUser posted

    I don't believe it is unwise, depending on what your alternatives are.

    If BOE rates drop below that level, then you would still have the option of ending your deal early - and that assumes that you would be able to beat the tracker rate at that stage (3.93%). The recent half point cut in the BOE rate has not in general been passed on to new deals, whereas those on trackers have automatically benefited from it.

    Posted on 29 October 2008 | Love Love  0 loves Report
  • followdeyes
    Love rating 0
    followdeyes posted

    HSBC are offering a +0.8 (ish) BRT at the moment. 65% LTV required however. As far as I am aware their is no such clause.

    Posted on 29 October 2008 | Love Love  0 loves Report
  • JoeEasedale
    Love rating 174
    JoeEasedale posted

    Don't neglect the possibility of base rate rises. This can be covered by cuffs as well as collars, but not if you don't check.

    Whilst concensus is that rates are going down now, a mortgage is a long term commitment. Once the Lunatics who are running the asylum are found out and all the money they are printing winds through into massive inflation about june next year ish then rates will rise back to the early 1990 days of maybe 18%, if we are lucky. imho

    Posted on 01 November 2008 | Love Love  0 loves Report
  • MarkTen
    Love rating 0
    MarkTen posted

    Twelve months ago, London and Country brokers (allied to Fool) got us a C&G tracker at 0.17 above base rate. Zero fees as well.

    I called C&G today to ask whether our mortgage has a cut-off point at which they wouldn't reflect any further lowering in the BoE rate. They are currently "looking into it". As, I suspect, all the other lenders saddled with mortgages they are possibly losing money on.

    Posted on 03 November 2008 | Love Love  0 loves Report

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