Each week Mortgage Solutions and its sister title, Specialist Lending Solutions, pick the top comments from our readers.
This week’s comment came in response to the article: Surging fixed rates make a case for tracker mortgages – West One Loans.
Alykas236 said: “We have been recommending trackers for a couple of months now for this very reason. With lenders raising rates to protect service levels, and failing, there is a real disconnect between mortgage rates and the base rate.
“Trackers, even for the short term are a great option as, in the case of the two market leading trackers, Barclays and HSBC, there are no early repayment charges (ERC) and the option to switch to a fix when rates fall back a little.”
They continued: “Market leading trackers are cheaper until the base rate hits 2.5 per cent, but as they are expected to fall back, this is a reasonable risk to be taking, particularly for those that can withstand the increased costs when rates rise.
“The mortgage market at the moment is akin to the panic buying of toilet roll at the beginning of the pandemic. If borrowers were a little calmer, rates wouldn’t be as high as they are.”
Alykas236 added: “If the client is aware and the broker is illustrating where payments would be with each 0.25 per cent increase, clients can make an informed decision.
“Locking in for five years at higher rates, when five-year swaps are lower than two-year swaps, is exactly what lenders want. Is there some profiteering going on?”
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
