Tracker Mortgage Rates At 7 Year High As A And L Joins Abbey To Launch New Range

12 November 2008 / by Rebecca Sargent

Tracker mortgage rates were at a seven year high in October, despite the base interest rate falling, new statistics from the Bank of England have revealed.

According to the statistics, the average tracker mortgage rate attached to the base rate, increased to 6.84 per cent in October, from 6.12 per cent in September, this is despite the fact that the Bank rate was cut by 0.5 per cent to 4.5 per cent, in early October.

The base rate has now fallen to just 3 per cent, which immediately prompted banks and building societies to remove their tracker mortgage deals for revision.

These deals have since been re-introduced today, but without the full base rate cut.

Until the latest rate cut, according to experts, it was common place for tracker mortgage interest rates to be as little as 0.5 per cent above the base rate. However, the latest offering from Abbey offers its lowest rate at 1.89 per cent above the base rate of 3 per cent for a two year tracker.

Written by Editorial Team