Tracker mortgages ‘appealing more’

Scottish first-time buyers – and those elsewhere in Britain – who have been more attracted to fixed-rate mortgages in the past are now more tempted by tracker-rate products, according to the Council of Mortgage Lenders (CML).

CML spokesperson Sue Anderson explains that this change could be in part due to anticipation that the Bank of England’s monetary policy committee (MPC) will slash interest rates at some point during 2008.

"So there is greater appetite than what there would normally be for tracker-rates, which will take advantage of rates if they do fall further," she notes.

Continuing, Ms Anderson states that those investing in commodities – such as Scottish property – should identify their own attitude to risk as well as remaining aware of the potential for interest rates to move either up or down.

The MPC elected to maintain the base rate of interest at 5.25 per cent in its lat meeting on March 6th.