With those on tracker mortgages seeing significant hikes in their monthly repayments, homeowners without the safety net of a fixed-rate mortgage may be considering moving to a new deal, according to Uswitch.com.
However, with some experts predicting that interest rates could decrease after peaking in 2023, there is a possibility that a tracker mortgage could result in lower monthly payments, and more money being saved in the long term.
As part of the company’s mortgage statistics report, the experts at Uswitch surveyed over 2,000 UK homeowners to investigate how homeowners from different age groups were utilising the potential of tracker mortgages.
The survey found that tracker mortgages are much more popular for homeowners aged 18-24, as 17.8% took on the risk of fluctuating interest rates influencing their monthly repayments. Standard variable rate (SVR) and discounted mortgages are also much more popular for 18-24-year-olds, at 25.7% and 14.9% respectively.
However, fixed-rate mortgages are still the most popular across all age brackets, and at least half of every other age bracket has a fixed-rate mortgage - with 4 in 5 (80.7%) of 25-34-year-olds choosing this rate - but only 41.6% of 18-24-year-olds opting for this deal.