Borrower interest in tracker products dips: Experian

Data from Experian shows that searches for tracker mortgages dropped from 38 per cent in July to 10 per cent in August.

Meanwhile, 38 per cent of searches were for fixed-term deals, up from 36 per cent in July.

Experian reports that this shift in activity is likely due to the Bank of England’s decision to raise the base rate to 0.75 per cent in August – a sentiment also professed by data firm Moneyfacts earlier this week when it suggested that remortgaging activity is likely to increase.

Experian says that according to its research, this base rate rise has added approximately £400 a year to borrowers on a tracker of SVR product, based on a 20-year, £250,000 loan.

According to Barclays, 1.4m customers are currently on either a tracker or SVR – £100bn of residential and BTL balances in total.

Experian Marketplace & Affinity managing director Amir Goshtai says: “The fall in searches for tracker mortgages suggests people are nervous about further rate rises, so are instead looking at fixed deals to given themselves more certainty.”

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