Is a tracker better than a fixed rate?

This is a question that was put to me recently, it made me grin on several levels, firstly because the mainstream public still don’t fully realise that tracker mortgages are now gone from the market, the second was that I was asked so close to a rate cut.

First things first, Tracker mortgages are now a thing of the past, every lender has withdrawn them from the market. The tracker mortgage was a transparent and easily understood it was based on something that people understood and could read up on easily. I would challenge most people to quote the morning bells 3 month euribor at the drop of a hat, even those of us in the mortgage industry.

The other part about ‘better than a fixed rate’ is this, rates just dropped, if you fixed your rate between June of 07′ and October 08′ then you missed a 0.25% rate hike in July, but the rates from 07′ had priced in the cost of funds for the most part, the …

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