“We’ve been waiting for exactly this to happen for some time now,” said Oracle Finance director, Conor Burke. “This is the lowest base rate tracker option available in Guernsey and is great news for borrowers who may wish to take advantage of the downwards trend.”
A base rate is determined by the interest rate set by the Bank of England, and tracker rates change depending on whether the Bank of England decides to amend the base rate.
Bank of England monetary policy committee meets 8 times each year to discuss the rate and determine if changes are needed.
“We are constantly monitoring the trends and it is widely expected that mortgage rates will fall,” Mr Burke said. “To now have such low rates available locally is brilliant news and is really encouraging for anybody hoping to switch or take on a new mortgage.”
Comparatively, fixed rate mortgages whilst currently marginally better that base rate trackers the monthly payments will remain the same for the term of that fixed rate which can be 2, 3, 5 or up to 10 years. Even if the base rate is at a record low, borrowers on a fixed rate can end up paying significantly more.
“Fixed rates had been dropping slowly as banks attempt to gain a competitive edge, yet these are still quite high when compared to recent times,” Mr Burke said.
Lloyds has taken the competitive advantage since publishing its new base rate tracker option on 10 April 2024, particularly after it was found that Channel Islanders were paying additional premiums compared to if they had secured the loan via the same bank in the UK.
“Channel Islanders were paying about 0.75% to 1% more than UK residents,” Mr Burke said. “This new option gives more flexibility and is a promising option for anybody who has been put off from the recent higher rates.”
Advice is available to anybody interested in how they could benefit from the new lowest tracker rate available locally.
“If your mortgage rate is due to mature soon then feel free to get in touch for a no-obligation discussion on your options with our friendly and approachable advisors,” said Mr Burke.
You can get in touch by phone 01481 727347, by emailing mortages@oraclefinance.gg or completing Oracle’s online mortgage enquiry form, available here: www.oraclefinance.gg/guernsey-mortgages
