‘Tracker mortgages are back’ – but is one the right choice for you?

Key Takeaways

• With some experts warning that we may have to brace ourselves for interest rate rises later this year, it might seem odd to suggest considering a tracker mortgage.
• But, amid the economic chaos caused by the Iran war, for some people looking for a home loan or to remortgage, a tracker – where the rate you pay moves up or down in line with the Bank of England base rate – could be a good bet.
• Typically, UK borrowers opt for fixed-rate deals, but trackers seem to be enjoying a mini-surge in popularity.
• The broker L&C Mortgages says the number of people applying for a tracker in April was more than three times that in March.
• “They are back in the conversation,” says Nicholas Mendes at the broker John Charcol.