Charcol has announced a new deal which, it says, will give borrowers the security of a fixed rate combined with the flexibility of a tracker.
"Anyone trying to choose a mortgage at the moment may well feel like their head is spinning, with rates yo-yoing and even the experts finding it hard to predict what news the next days and weeks might bring. While many people might be looking for the security and peace of mind that a fixed rate can bring, these products just aren't looking all that competitive right now. Most mortgage commentators now expect bank rate to fall by at least one per cent by the end of 2009 making trackers the clear winners on which to ride out the storm," says Drew Wotherspoon of Charcol.co.uk.
"But while some people might be put off taking out a tracker now, preferring to wait and see whether fixed rates improve, so that they can be sure of their outgoings each month, there is a really simple solution that gives you the best of both worlds. Many trackers now have a ‘drop-lock' option, which allows borrowers to play a waiting game and benefit from any fall in interest rates, but which can then be switched to a fixed rate as soon as they think the time is right. And making the switch is simple - all it will take is one phone call and the mortgage will be changed to a fixed rate. There will be no new forms to fill out, all it takes is one call."
Charcol has a number of drop lock exclusives at present, which will suit many borrowers. To see some of them please look at the attached best buy table.
Drew concludes, "While there are products out there that might well fit the bill for worried borrowers, finding and securing them is another matter. The best way to ensure you get the very best mortgage for you is to use a whole of market mortgage broker who can keep an eye on the market each and every day and then arrange the home loan that is just right for you."
Date: 24th, September, 2008
Author: Ben Wilkie
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