Mortgage intermediary Charcol has reacted to yesterday's rate cut by the Bank of England by stating i...
The cuts since the start of the year have already shaved £2,000 in annual payments off the typical mortgage worth £100,000, but this is leading lenders to set limits on how far they are willing to allow mortgage rates to follow the base rate down.
"[Some Societies] have already imposed collars on some or all of their discounted rates and as rates drop further borrowers should watch out for others," Charcol says.
With most of the market betting on further rate cuts, the tracker mortgage is going to stay popular, but borrowers should still look for the product that is right for their particular circumstances bearing in mind the likely increase in the use of collars, it adds.
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