Lifetime tracker: Huge benefits for remortgagers

Lifetime tracker mortgages are being tipped as the best bet for remortgagers looking for flexibility and long-term discount rates.

New research shows not only do lifetime trackers account for 42 of the 200 best-value two-year deals on the market, they are also available through 27 of the 90 lenders.

And in the five-year mortgage market, lifetime trackers comprise 64 of the top 200 deals said mortgage analysts mform.co.uk, which is urging borrowers to switch to long-term discount rates.

Remortgaging decisions are currently causing a headache for borrowers, many of whom plagued by confusion as lenders increase rates of fixed and discount products and are facing uncertainty over the direction interest rates.

Francis Ghiloni of mform said: "The good news is that lifetime trackers are an increasingly attractive alternative as they offer falling rates if the Bank of England cuts again but if rates don't fall they do not tie borrowers in enabling people to switch for a relatively low cost."

Low application fees, which characterise most lifetime trackers, are an added bonus as this means borrowers can regularly switch without being struck with big financial penalties.

Mform picked out Coventry Building Society, the Co-op Bank and Lloyds TSB among the lenders which offer lifetime trackers. Chesham and Cambridge Building Societies, it said, did not charge application fees either.

Leek Building Society's 5.74 per cent term two-year tracker and Norwich & Peterborough's 5.74 per cent lifetime tracker were also highlighted.