Consumers striving to hedge their bets against interest rate movements should consider lifetime tracker products, Mform.co.uk says.
The consumer website has seen a 3% rise in applications for lifetime trackers in the first two months of 2008 compared with November and December 2007. Mutual Leek tops the website’s short-term table with its lifetime variable deals.
Francis Ghiloni, marketing and business development director at Mform.co.uk, says: “Uncertainty about lenders increasing rates on fixed and discount products has left many borr- owers confused. But lifetime trackers are an attractive alternative because they provide falling rates if the Bank of England cuts the base rate again.”
But Bob Riach, proprietor of Riach Independent Financial Advisers, says: “I find clients are still choosing fixed rate deals as they find lifetime rates less attractive.
“Despite fluctuating interest rates they feel more comfortable with the consistency of fixed rate products.”