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Tracker mortgages more expensive, figures show
Wed, 29 Oct 2008
The average cost of a tracker mortgage is more than it was this time last year, despite a fall in the Bank of England base rate, figures show.

In October 2007, the average rate for such a product was 6.23 per cent, now it is 6.26 per cent, research by Moneyfacts.co.uk indicates.

Over the same period, there has been a 1.25 per cent fall in the base rate.

Michelle Slade, analyst for the website, said: "Despite the best efforts of the Bank of England to bring borrowing costs down, lenders just aren't passing the cuts on to consumers."

This applies to mortgage borrowers and business customers alike, she added.

Some consumers might also find that their tracker mortgage is 'collared' meaning that there is a certain level below which the interest rate cannot fall, Ms Slade stated.

Yesterday, Moneysupermarket.com claimed that last week was a "grim" time for the mortgage market .

According to the price comparison website the number of mortgage deals available fell by 23 per cent over this period.

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