Lowest Base Rate Tracker Mortgage Rates
In the last month mortgage lenders like Cumberland Building Society, ING Direct, Nationwide Building Society, Northern Bank (NI), Northern Rock, Platform, Principality Building Society and Santander.
Others who followed suit included The Mortgage Works, Woolwich and Barclays who also cut rates on base rate tracker mortgage rates.
In sharp contrast, the average rate on a 2-year fixed rate mortgage has increased to 4.59% – its highest level in 10 months.
Over the past year the shelf life of a fixed rate mortgage has nearly halved from 27 days to just 14 days.
Latest figures show that the demand for mortgages amongst visitors to Moneymatchmaker.com has risen in the past 12 months from 14.81% to 28.4%.
A spokesman for Moneymatchmaker commented saying “UK Mortgage borrowers have been waiting to see what would happen with UK mortgage rates over the last couple of years, sticking on a lenders standard variable rate rather than move to a more expensive mortgage deal.
“Talk of an imminent base rate rise has caused a surge in the demand for new mortgage deals. Lenders appear to be trying to tempt borrowers off record low SVRs on to new tracker deals instead.
“Tracker mortgage rates and deals continue to be more competitive than fixed rate deals, but borrowers need to ensure they consider the effects of any base rate rises on their monthly mortgage repayment when considering a new deal.
“The rise in swap rates appears to have plateaued, but the rise in fixed rates continues – albeit at a slower pace than a few months ago.
“Borrowers looking for the best fixed rate mortgage deals need to act fast as deals are only in the market for an average of two weeks before being withdrawn and new rates offered.”
To compare mortgage rates in the UK to find the best deals to suit your circumstances