Rapidly increasing swap rates are likely to make tracker mortgages or those with discounted mortgage rates the best value deals over the next two weeks, according to one mortgage expert.
Fixed-rate mortgages will lose their competitiveness in the next few weeks, says the head of mortgages at Woolwich , Andy Gray.
"Rapidly increasing swap rates, pushed higher by a view that base rates will rise this year, are having the effect of making fixed-rate products increasingly expensive to put together," Mr Gray explains, adding that this adds to making mortgage rates uncompetitive.
This is why the mortgage lender recently launched a lifetime tracker mortgage that it claims is "market leading".
The new tracker mortgage rate will be set at 0.19 per cent above the Bank of England's base rate.
Woolwich is also launching a new two-year tracker mortgage that comes with a discounted mortgage rate that is 0.12 per cent below the base rate.
"In the current market it will soon be impossible to come anywhere near this on a fixed rate," Mr Gray comments.
The new tracker mortgage with the discounted mortgage rate can be taken out for a maximum loan-to-value of 75 per cent.
For those wanting to take out a mortgage with a loan-to-value above 75 per cent, the mortgage rate will be 4.79 per cent.
New and existing customers can apply at any branch of Barclays or Woolwich – the mortgage lending arm of Barclays – or on either provider's website.
Mortgage lender says fixed-rate deals set to lose edge
Mortgage Quote Line
0845 108 0505
Mortgage lender says fixed-rate deals set to lose edge
Wed, 10 May 2006
Recommended links
Tracker MortgagesMortgage Calculator
Fixed Rate Mortgages
Abbey releases two-year tracker mortgage
Apply for a free fixed rate tracker mortgage quote
New tracker mortgages from the Bank of Scotland
Tracker mortgages looking like a good option for 2006
Semi-exclusive tracker mortgage offer announced
New tracker mortgages claim to be market-leading
Tracker mortgages still a good option, expert claims
New capped tracker mortgages unveiled
Tracker mortgages give good value despite forecast rate hike
Tracker mortgages still good value, say experts
Tracker mortgages to become more popular, expert claims
New tracker mortgages claim to be market-leading
Fixed and tracker mortgages combined
Tracker mortgages falling in price, reveals study
Base Rate Tracker Mortgages Explained
New fixed rate mortgage available from first direct
No more cheap fixed rate mortgages
Fixed rate mortgages set to rise in price
New fixed rate mortgages from AandL
Cheaper fixed rate mortgages predicted
Leeds launches 10-year fixed rate mortgage
Fee-free fixed rate mortgage offered by Bradford andamp; Bingley
Fixed rate mortgages from Chelsea increase
Fixed rate mortgage launched by West Brom
Competitive fixed rate mortgages behind market buoyancy
Ten-year fixed rate mortgage from West Bromwich
Fixed rate mortgages many and tempting
New fixed rate mortgage from Britannia
Fixed rate mortgages set to expire
Leeds Building Society launches fixed rate mortgage
| mortgages news |
|---|
| Mortgage approvals halved in January 2010 - Fri, 12 Mar 2010 |
| Cost of mortgage debt reaches six-year low - Fri, 12 Mar 2010 |
| Santander announces cuts to mortgage rates - Fri, 12 Mar 2010 |
| More News |
Mortgage Rates by Lender 
Worried about Mortgage Repayments?
- Join our petition to Government to bail out burdened individuals, not just banks.
Free Mortgage Quote
Mortgages in Scotland
Equity Release
Switching Mortgages
Home Reversion Plans
Commercial Mortgages Arrears & CCJs?
Remortgages- Sub prime mortgages
- Arrears, CCJs
- Self certification
- Debt consolidation
Protect Your Mortgage