Mortgage market trends show rising interest in tracker deals

The mortgage market is seeing a shift in consumer behavior as interest in tracker mortgages increases. Santander reports that the number of customers choosing trackers has risen from one in 35 to one in 20. This trend follows lenders pulling hundreds of cheap deals due to inflation, rising energy prices, and geopolitical instability.

Common mortgage options include fixed-rate deals, which provide predictable monthly repayments for a set term, and Standard Variable Rates (SVR), which are default rates set by lenders that can change at any time. Some borrowers are also seeking variable deals, specifically base tracker rate deals without early redemption penalties.

To navigate these options, many consumers utilize mortgage advisers or brokers. While some advisers offer free initial consultations, others charge fees based on the complexity of the requirements. In the UK, mortgage brokers and advisers are regulated by the Financial Conduct Authority. It is recommended that borrowers clarify how an adviser is compensated, whether through direct fees or lender commissions, before proceeding.