Mortgage borrowers are turning to trackers with no early redemption penalties in anticipation of a base rate drop in February, according to John Charcol.
The mortgage broker says statistics show its three most popular mortgage products sold so far in January are all tracker rates with no early repayment charges (ERCs). Rumours of a base rate cut in the coming weeks, coupled with a lack of good fixed rate deals, are causing customers to leave their options open by opting for tracker rates that can be repayed at any time, with no penalty. Katie Tucker, technical manager at John Charcol, explains: “Bank rate is widely expected to fall so trackers or discounts make sense for most borrowers, and one with no tie-in at all means you can remortgag...
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