1.99% mortgages on offer

4 December 2008

Mortgage providers are offering some people fixed-rate mortgages with exceptionally low rates – as low as 1.99%.

According to The Telegraph, West Bromwich Building Society has approached 15,000 borrowers currently on tracker mortgages, asking them to consider switching to short-term fixed-rate deals with low interest rates.

At the end of the fixed-rate period, they would revert to a tracker mortgage set at 0.99% above the base rate – but with a minimum (known as a ‘collar’) of 2.75%.

“With the Bank of England’s Monetary Policy Committee widely expected to cut the base rate by a further 1% today, tracker mortgages have been attracting a lot of attention recently,” said a Think Money mortgage expert.

“However, anyone thinking about switching to a different mortgage should think very carefully about collars, fees, early repayment charges, the future of the base rate, etc. Choosing a mortgage can require a lot of calculations, so it’s always a good idea to seek expert mortgage advice before committing to anything.”

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Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Tags: mortgage, mortgage providers, fixed rate, tracker mortgage, mortgages, collars, mortgage collars

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