Withdrawal of Tracker Options a Rude Shock for Borrowers

In recent times, there has been a withdrawal of several tracker mortgage options which has come as a blow to most borrowers. As a result, when homeowners plan to opt for a tracker mortgage option at the end of a deal, would be taken aback to find that they are left with limited options only. Currently, the fixed rate mortgages are very costly compared to tracker-rate mortgages. For most of the borrowers who till date had been on tracker Mortgage options for many years were in for a rude shock with the withdrawal of tracker options by many banks. Experts are of the opinion that cap and collar mortgages which were in vogue in the 1980s are ready to reappear very soon. As many as 23 tracker options have been withdrawn from the market after the Bank of England reduced the base rate to 3 per cent.

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