“The latest announcements from Abbey, Lloyds and A&L; that their tracker rates are back on the market is a step in the right direction, but the most competitive, which is the one offered by Lloyds for a 2 year fixed rate, is still 1.79% above the base rate and to get it, borrowers need a deposit of at least 40%. This is still some way off from where people want it to be.

“Borrowers coming out of fixed rates on to variable rates are holding back because they are waiting to see what the market is going to do. They are seeing that lenders are not following the rate as they used to, and are unsure at what point to decide what to do with regards to their own mortgages.

“By offering these tracker deals, Abbey, Lloyds and A&L; are attempting to get more of the mortgage market and to try and pull some of these undecided borrowers into a deal; it will be interesting to see what the other big lenders do in response.”