Tracker
mortgages still offer good value in the
UK, despite an imminent rise in
interest rates, according to analysts.
Despite the
Bank of England's decision to freeze
UK interest rates again yesterday,
price comparison company Moneysupermarket suggests that they may rise before the end of the year.
However, the organisation believes that UK
tracker mortgages still offer good value over the long-term.
Louise Cuming, head of mortgages at Moneysupermarket, said: "It’s not always as clear cut as fix or
tracker . What people should be asking themselves is whether they are already at the top level of affordability when it comes to their monthly outgoings.
"If so, and if even a small rise is
base rates would stretch this, then they would be wise to opt for a
fixed rate . If they have some leeway available then they would be better off with a tracker because, ultimately, all the pointers indicate that
rates are unlikely to rise significantly in the next two years."
Several experts have stated that significant rate changes are unlikely in the near future; Howard Archer of Global Insight described unchanged rates as a "certainty".
