My colleagues have been discussing the shift in mortgages for quite a while now. Basically, people are not going for variable-rate mortgages these days. So much so that James asked – back in April – whether tracker mortgages are dying.
Well, it looks like some versions of the tracker are on their last legs. This week, Barclays announced that it’s discontinuing its lifetime tracker product, and launching a two-year version.
Why the big shift?
Barclays managing director of mortgages Andy Gray says:
“We have seen a significant number of homeowners favouring our two-year and five-year fixed rate mortgages.
“It is evident that homeowners are looking for certainty with their mortgage payments, opting for fixed rate terms that help to protect their mortgage payments during the period in which we may see interest rates rise.”
The market is following the trend, and we expect it to continue, and our advice? Shop around!
It’s our job to find you the right mortgage product, so drop us a line, and we’ll get started.