The track and fix hybrid mortgages is a longer term deal that is a blend of both tracker and fixed rates.
It currently comprises a margin over the bank base rate for the first two years of the mortgage, followed by a fixed rate for the final three years.
Simon Collins, technical manager at John Charcol, said: “Borrowers have been reluctant to take longer term fixed rates when they know that variable rates are likely to remain low for the next couple of years at least.
“Yet at the same time they are anxious over longer term payment security, knowing that in 2 years time, fixed rates may well be significantly higher.
“The hybrid is therefore the perfect product for those borrowers who want to take advantage of low variable rates now, while securing a fixed rate element at today’s historic low prices.”
Collins said: “Everyone knows that the bank rate will increase at some point but the big question is when and how fast?
“The hybrid is arguably the most innovative mortgage product we’ve seen in a good few years and so far is only offered in the intermediary market by Accord Mortgages.
“With the current stagnation in the housing market, and many high street lenders sticking obdurately to their traditional 2-year products because they have the lowest initial pay rates, it would be fantastic to see other lenders take up the mantle started by this novel product.”
