From This is Money:
Its ‘capped tracker’ is 2.49 percentage points above base rate, so it is currently charging 2.99%.
This gives initial repayments on a typical £150,000 loan of £711 a month.
But it is capped at 5.99% for five years, providing a level of security that traditional trackers simply don’t provide.
This ceiling would need to come into force only if base rate hit 3.5%.
It is available for those with a 25% deposit and carries a fee of £995.
Though it is possible to get a cheaper rate on a tracker where the rate has no ceiling, the offer still stands up well against the best fix and tracker deals in the market.
The top five-year fix – from the Co-op – comes in at 4.99%, while ING Direct’s table-topping two-year tracker is 2.49% above base, so currently charges 2.99%.
Base rate has remained at an alltime low of 0.5% since March.
Despite this, the latest figures from the Council of Mortgage Lenders show that around eight out of ten borrowers prefer the securi…