Be careful if switching from a tracker mortgage!

24 October 2008
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The Consumer Director of the Financial Regulator, Mary O'Dea today warned that mortgage lenders must act in the best interests of their customers when providing advice on switching tracker mortgages to fixed or variable rate mortgages.

Tracker mortgages are no longer available from lenders.The simple reason for this is that the lenders would lose money on trackers unless they charged margins of 2% or more above Ecb.Many lenders are actually losing money on existing tracker mortgages and the Regulator is obviously concerned that there might be a temptation by lenders to entice customers to switch from existing trackers to variable or fixed products.Once you leave a tracker rate you have no entitlement to get back to a tracker at a later stage.

So if you have a tracker, hang on to it!