Track and fix mortgages 'can keep costs down'
7th Feb 2012
People can help to keep their monthly outgoings down by choosing track and fix hybrid mortgages, which are an "excellent" option, one expert has claimed.
For first-time buyers in particularly, track and fix hybrid mortgages will keep costs down now, and stop them spiralling in a few years if rates do go up, said Catherine Hearnden, director at MyMortgageDirect.
She also predicted that more lenders will offer them in the near future in order to remain competitive.
"Lenders will still be looking at swap rates for the fixed part [of the deal], so I can't imagine that it is costing them anything. They have just got that little bit of uncertainty now, but that is the same with pricing any mortgage product," the expert predicted.
Ms Hearnden noted that she does not think that lenders will only follow suit on the high street, as many will "test the water" on a few options to ascertain whether there is take-up through the intermediary market.
Hybrid mortgages will eventually be available on the high street, but it is not something that they will advertise for a while, as they may appear slightly complicated for someone shopping around by themselves on the high street.
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