Regulator Warning On 'Tracker' Loans

Daily MailOctober 23, 2008

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Summary


CONSUMERS thinking of giving up their tracker mortgages for apparently enticing new deals should think very carefully, the Financial Regulator warned yesterday.

With tracker mortgages now costing financial institutions money, as the cost of lending between banks is higher than the European Central Bank (ECB) rate that trackers follow, a number of lenders are offering attractive packages to encourage mortgage-holders to switch.

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Regulator Warning On 'Tracker' Loans

Tracker mortgages are variable-rate loans, where interest is linked to the ECB rate.

The 400,000 or so cust...

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