8
Jan
Tracker customers 'could save £45' if rate cut
A base rate cut today could result in tracker mortgage customers
being £45 a month better off, it has been projected.
The Council of Mortgage Lenders (CML) has calculated that holders
of such deals worth £150,000 over a 25-year duration could
save £45.83 a month if the reduction were to be by 0.5 per
cent.
A 0.25 per cent trimming would reduce payments by
£23.04.
Tracker or discounted variable mortgages make up 40 per cent of
current deals, while in October 2008 35 per cent of mortgages were
trackers, the CML noted.
While many could benefit from a rate reduction, the body noted that
some deals have a minimum rate, which would prevent the full cut
being passed on.
A mortgage of £150,000 is the closest figure to the current
average house price according to Nationwide, which put the level at
£153,048 in December.
