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Tracker advice issued by broker

People currently repaying their home loans on a tracker rate should tread carefully, mortgage broker John Charcol has said.

According to the firm, the fact that many homeowners currently coming off low two-year fixes are looking to remortgage led to lenders fearing a "stampede" into trackers.

John Charcol analyst Katie Tucker said: "Because the synchronisation of exceptionally low two-year-old deals…are now reverting to unnaturally high standard variable rates of around 7.25 per cent, remortgagers are also scrambling to arrange affordable rates, and lenders have had to pull their best [tracker] deals off the shelves, just to catch their breath."

Analysis from the brokers also suggests that many home loans holders will find securing a competitive variable rate which tracks the Standard Variable Rate (SVR), difficult.

"Borrowers should check their Key Facts Illustrations to verify whether their rate tracks Bank Rate, SVR, or nothing at all," Ms Tucker advised.

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