Surge in interest for tracker mortgages following base rate hold
There has been a sharp increase in the number of consumers looking at tracker rate mortgages, according to the latest data by Experian.
Experian’s credit search barometer shows that in May almost half (46.8 per cent) of mortgage searches were for details of tracker rates and deals. This is significant increase on the 32.6 per cent of searches in April.
At the same time the proportion of potential mortgage customers looking for details of fixed-rate products fell, from 31.7 per cent to 24.1 per cent. There was also a decline in the proportion of searches for other types of variable rate mortgage.
Experian says that it’s likely many of these customers will eventually secure a fixed rate, either to remortgage or to buy a property. But it adds that this data indicates that potential homebuyers have been encouraged to consider a tracker for their mortgage following the decision of the Bank of England in May to hold interest rates again at 0.5 per cent.
Experian Marketplace managing director Amir Goshtai says: “This credit search barometer gives a flavour of what consumers are prioritising when it comes to mortgages, credit cards and loans.”
Source: Mortgage Strategy