Customers looking to
find a remortgage face a tricky decision between opting for a fixed-rate or
tracker mortgage, according to experts.
Dave Dyer of Direct Line, which provides
mortgages,
personal loans, savings accounts, travel
insurance, home insurance and pet insurance has stated that customers often try to guess what the
mortgage rates will be before deciding on a deal.
Customers are anxious to ensure they get the
remortgage rates to suit them over a long-term period, asserts Mr Dyer.
"Fixed rate mortgages offer the security which many customers feel most comfortable with and of late, the two-year fixed rate has been the most popular type of mortgage in the country.
"Tracker mortgages do not have the same level of certainty because they mirror the base rate and clearly if that moves up or down, then so does their tracker mortgage rate and therefore their monthly payment," he added.
Mr Dyer's announcement comes as Direct Line has announced a new two-year fixed rate mortgage, which comes with optional home insurance.
Direct Line also offers a tracker mortgage which sits at the Bank of England base rate for two years, before reverting to 1.1 per cent above.
