Base rate cuts prompt fixed rate exodus

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Fixed rate mortgages have seen their popularity fall significantly since the Bank of England's shock rate cut last month, new research suggests.

Borrowers are increasingly moving to tracker mortgages, hoping to make savings in the future as interest rates fall, according to Spicerhaart Financial Services. Spicerhaart’s latest mortgage survey also found first time buyers are beginning to re-enter the market as house prices have fallen. With the Bank of England hotly tipped to make a further cut in base rates tomorrow, and with further cuts on the horizon, borrowers are looking to benefit by switching to a tracker mortgage. Spicerhaart’s survey suggests the number of homeowners opting for tracker mortgages increased by 12.5% during...

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