Swap rates rise makes tracker mortgages more attractive

Following a recent report, which suggested the rise in Swap rates was making fixed-rate mortgages more expensive, a leading mortgage provider has spoken in favour of tracker mortgages as the new loan of choice for home buyers.

Woolwich, a subsidiary mortgage and financial product company of Barclays Bank, claims that although fixed-rate mortgages have traditionally been the preferred cheaper option, tracker mortgages were becoming competitive.

"Fixed-rate deals are now more expensive," said Andy Gray, head of mortgages for Woolwich. "It's more comfortable with a tracker; it's linked with the bank base rate.

"Interest rates might go up but trackers are still a good deal," he continued, saying that choosing the best mortgage to suit your own personal circumstances was "all about getting good advice".

"If you still want to opt for a fixed rate, you will have the security, yes, but you will have to be ready to pay a bit more," Mr Gray concluded.

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