From This is Money:
Mortgage approvals are rising and Nationwide Building Society said on Thursday that house prices had risen for the third consecutive month in July.
For borrowers looking to remortgage as their current deal comes to an end, the dilemma of deciding between a fixed or tracker rate has never been thornier.
The difference between the best fixed rates and tracker deals has widened in recent weeks as fixes have become more expensive.
As a result, some trackers have started to look more attractive.
For example, Alliance & Leicester, now part of Spain’s Santander, has a two-year tracker at 2.45 percentage points above the base rate, giving a starting pay rate of 2.95%.
By comparison, the best two-year fix is with First Direct at 3.34%. The best five-year fixed rates start from 4.8%.
‘Borrowers who want payment certainty should always fix,’ says Ray Boulger at mortgage broker John Charcol.
‘But for those who are prepared to gamble that low interest rates will be with us for a…