HSBC: tracker mortgage rate at 5.44 percent on 100 Mortgages

As some mortgage lenders withdrew their tracker rate mortgages prompted by the Bank of England base cut last week the good tracker deals are few and far between, with HSBC coming out on top with the best variable tracker rate currently on offer for a remortgage is 5.44 percent, with a product fee of £499 according to moneyfacts.co.uk

Borrowers who were already on Tracker mortgages will have benefited immediately from the rate fall. The base rate cut will not automatically help lenders offer better mortgage rates to consumers, the rates at which the banks lend to each other (Libor) still remains high which means that banks are paying a high price to obtain the money they need to lend to the consumer so until the Libor comes down the banks are less able to offer better deals.

It’s expected that fixed rate deals will now come down in price and that banks will loosen their lending criteria slightly allowing more movement in the housing market.

Source: FT

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