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Sub-1% trackers disappear from market


There are no more sub-1 per cent trackers on the market following the recent Bank of England decision to raise base rate, according to Moneyfacts.

Moneyfacts says the average two-year tracker rate today is 1.97 per cent, with the lowest on offer being 1.24 per cent.

Lenders have increased tracker rates by an average of 0.20 per cent since 1 November, when Barclays was selling two-year trackers at 0.99 per cent.

A year ago the average two-year tracker rate was 2.02 per cent and the cheapest was 1.19 per cent.

Moneyfacts finance expert Charlotte Nelson says: “Less than two weeks have passed since the Bank of England’s rate rise and the majority of providers in the variable tracker market have already passed on the increase, causing the average two-year variable rate to rise and effectively cancelling out any gains made in the past six months.

“Unfortunately, with little room to manoeuvre at such low rates, providers have no choice but to pass on the base rate rise to borrowers.”


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