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ArthurHon

What Is A Good Tracker Rate?

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We keep hearing about banks profiteering but there seem to be lifetime trackers at less than 2% above base rate available if you are a very low risk borrower, I know in the credit boom you could get below base rate trackers but that won’t happen again. Now that risk has been rediscovered by the banks I was curious if this is cheap, it seems cheap to me but then I am not old enough to remember what normal was.

Does anyone happen to recall what trackers rates were before the credit boom and if so would <2% be cheap historically?

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We keep hearing about banks profiteering but there seem to be lifetime trackers at less than 2% above base rate available if you are a very low risk borrower, I know in the credit boom you could get below base rate trackers but that won’t happen again. Now that risk has been rediscovered by the banks I was curious if this is cheap, it seems cheap to me but then I am not old enough to remember what normal was.

Does anyone happen to recall what trackers rates were before the credit boom and if so would <2% be cheap historically?

My tracker mortgage is 0.65% above ECB rate.

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We keep hearing about banks profiteering but there seem to be lifetime trackers at less than 2% above base rate available if you are a very low risk borrower, I know in the credit boom you could get below base rate trackers but that won’t happen again. Now that risk has been rediscovered by the banks I was curious if this is cheap, it seems cheap to me but then I am not old enough to remember what normal was.

Does anyone happen to recall what trackers rates were before the credit boom and if so would <2% be cheap historically?

As you have already mentioned pre credit boom trackers were always priced in and around the Bank of England Base Rate (BOE) and sometimes below it.

Whilst a rate of 2% offers good value now, if the BOE were to increase interest rates in the future your mortgage payment could begin to look expensive. The counter argument to this that many economists predict that BOE will remain low for quite some time thus making this a cheap option.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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