The average two-year tracker is looking increasingly better value, according to one price comparison site.
Moneysupermarket.com has worked out that the average two-year tracker now stands at 5.9 per cent. The last time trackers were this low was in March 2007.
For the sake of contrast, the average two-year fixed rate mortgage is 6.45 per cent.
Louise Cuming, head of mortgages at Moneysupermarket.com, said while homeowners tend to look to fixed-rate products for security, the new findings show it is important to search for other deals.
Trackers have been avoided in recent months due to unstable interest rates, she remarked.
"Yet all the signs are that rates will be kept on hold for the time being, with the next movement potentially being a reduction."
But it seems that fixed-rate mortgages are not to be outdone in the race to woo homeowners.
In recent days, Abbey, Halifax, Cheltenham & Gloucester, Woolwich and Nationwide have all reduced the rates on their fixed-rate products.
See Also: Property News (6705)
Date Published: 24 July 2008
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