Tracker mortgages set for repayment rise
Published On 7 November 2006
Customers with tracker mortgages are set to see more of their money go to their lender in the coming weeks, which could encourage many to consider their remortgage options.With a rise in interest rates predicted for later in the week, those people with standard variable rate (SVR) mortgages will soon be paying a higher rate of interest, claims mortgage broker John Charcol.
A number of experts are also predicting a further interest rate hike early next year, meaning those stuck on a tracker could be in danger of losing substantial sums.
Ray Boulger, senior technical manager at John Charcol, explains that the average SVR customer will be forced to pay £15 more a month following the November rise, adding up to £180 year.
"While an interest rate rise is never good news for homeowners, those who are still on their lender’s SVR will be hit particularly hard, yet have the greatest opportunity to do something about it," he said, adding that while many of the most attractive fixed rate offerings have gone, there are still some decent deals to be found.
SVR customers are already paying more than £100 a month than compared with the best fixed deals, the company claims.
