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Lenders are losing money on Tracker Mortgages which have
a fixed add-on rate to the European Central Bank benchmark rate of 4%. Because
of the credit crisis and the resultant high inter-bank rate, some lenders have
raised the rates applying to trackers and it is expected that the mortgage type
will be phased out. For more information click
here.
ECB rates rose to 4.25% on July 03, 2008.
The base rate for trackers has increased by 2% since
December 2005.