Quick links to latest articles:

'Era of interest-free mortgages' could be ahead

13 January2009

After dropping for four consecutive months, the falling base rate may usher in an 'era of interest-free mortgages', The Telegraph reports.

Some people with tracker mortgages could find themselves facing an interest rate of zero percent: while most tracker mortgages charge a certain amount over the Bank of England's base rate, some charge a certain amount under the base rate.

With interest rates at an historic low, this places those borrowers in an excellent position. Someone whose tracker mortgage charged 1% below the base rate, for example, would be paying a mere 0.5% today - and one more drop of 0.5% would mean they'd be paying no interest on their mortgage at all.

Should any of those people have an interest-only mortgage, their monthly mortgage payments would drop to nothing.

"Falling mortgage rates are extremely good news for people with tracker mortgages," said a mortgage expert for Think Money. "Many people with tracker mortgages are now paying literally hundreds of pounds less every month - money which we advise them to put to good use, whether that means paying off debts or saving for the future."


Think Money work with a panel of lenders to offer a range of mortgages. If you are considering taking out a mortgage, contact one of our expert mortgage advisers today.

Fill in our form to find your mortgage solution

About your mortgage
Amount required:
Your information
Title: First name: Surname:
Telephone 1: Telephone 2: Email:
By continuing, I agree to the privacy policy

Tags: mortgage, mortgages, tracker mortgage, tracker mortgages, interest rates, base rate, bank of england

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider. Cards are provided by third parties and are subject to eligibility, status and terms and conditions. Applicants must be UK residents aged 18 or over.

All About Money Limited © 2013. All rights reserved. 42 Boston Rd, Sleaford, Lincolnshire NG34 7ER.