Posted on 25 September 2008 by
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 1 per cent by the end of 2009 making trackers the clear winners on which to ride out the storm.
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.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and neither John Charcol nor Drew Wotherspoon will accept liability for them.