Consumers are flocking to sign up for the few trackers left on the market, research shows.
October saw consumers rush to take advantage of tracker mortgages in anticipation of further interest rate cuts by the Bank of England, it has emerged. According to research by mortgage broker Spicerhaart Financial Services, the number of people taking out trackers rose by 12.5 percent last month.
At the same time, the number of fixed rate deals being agreed fell by 11 percent, suggesting consumers are confident that the monetary policy committee (MPC) will reduce the cost of borrowing later today and are less sure that banks will pass on any cuts to fixed rate mortgage customers in the form of cheaper deals.
Steve Cox, operations director at Spicerhaart Financial Services, said: "There has been a rush of borrowers to secure the remaining competitive trackers available. If the base rate is cut again on Thursday, which is very likely, these borrowers will reap the rewards."
However, it has been reported that a number of banks have withdrawn their tracker products or increased their margins ahead of today's interest rate decision, which means that finding a competitive deal is now more difficult.
The Bank of England's MPC will make its announcement at noon today. A survey of investors carried out by Barclays Stockbrokers shows that 58 percent expect to see a full one percentage point reduction, bringing rates to 3.5 percent.
