You are here: Home - Mortgages - First Time Buyer - News -

Third of tracker mortgages pulled after base rate drop

0
Written by:
24/03/2020
Almost one in three tracker mortgages were withdrawn from the market just days after the Bank of England (BoE) dropped the base rate to a record low of 0.1 per cent.

Today HSBC became the latest lender to withdraw tracker products, with all two-year tracker rates being removed from sale.

According to Moneyfacts data, on 18 March, the day before the most recent cut to 0.1 per cent, there were 243 tracker mortgages available but as of 24 March, there are now 168 – a 31 per cent fall.

The most significant drop was seen among the two-year tracker category, where the number of products available fell from 198 to 132.

Full-term tracker mortgages saw product numbers decline from 38 to 33, while five-year trackers fell from five to one. 

The only tracker category not to see a change were three-year offerings with two options still available to borrowers. 

The first emergency rate cut to 0.25 per cent on 11 March did not appear to have as much of an impact on lenders.

According to the Moneyfacts data just one tracker mortgage was withdrawn across all categories following the 11 March announcement. This was a two-year tracker mortgage. 

Average rates 

The average rate of a tracker mortgage has seen an inevitable drop with a two-year tracker now typically at 1.73 per cent, down from the 1.88 per cent recorded on 20 March.

This is down further from the 2.03 per cent recorded on 10 March, the day before the first emergency base rate cut to 0.25 per cent.

The average rate for a five-year tracker is currently 1.59 per cent, previously 1.83 per cent on 20 March and 2.33 per cent on 10 March.

A term tracker mortgage now has an average rate of 3.07 per cent, down from the 3.26 per cent seen before the base rate was cut to 0.1 per cent. Before this, the average rate was 3.72 per cent. 

Three-year trackers maintained the same average rate of 3.14 per cent. 

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week