Considering the phenomenal interest rate highs of the late 1980s and early 1990s, things have been relatively stable and subdued since the turn of the century. Indeed, from a high of 6% in February 2000, the Bank of England interest rate dipped to a low of 3.5% in July 2003, gradually creeping up to 5.25% by January 2007. These low rates might not have been great for savers but they have been pretty good news for people taking out mortgages.
While there are plenty of mortgages in the market to choose from, the two key types are fixed-rate mortgages and tracker (or variable) mortgages – both of which are offered by Direct Line. Fixed-rate tends to be preferred by buyers who want to know exactly what their monthly payments are going to be. People who go for tracker mortgages know how their payments are going to start out but accept that there may be some fluctuation.
Direct Line offers two types of discount tracker mortgage, both of which are linked to the Bank of England’s (BofE) interest rate. If that rate goes down then so will your mortgage rate. Of course, if that rate goes up, your mortgage goes up too.
Our two tracker mortgages types are the two-year discount tracker, which you can apply for over the phone or online and our online only two-year discount tracker, for which you can only apply online.
You can find out more about both of these mortgages online as well as use our mortgage calculator to work out what your likely repayments would be.
What’s more, if you take out on of our Direct Line mortgages, we’ll give you a discount on our best home insurance price.
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