Hybrid tracker mortgage deals - a great option for first-time buyers?

First-time buyers are being advised that a hybrid tracker mortgage deal is a good option for those struggling to get on the property ladder.

It is a good way to manage costs, as when rates rise only a proportion of the home-owners borrowing will increase in cost, the rest of the debt will remain on a fixed rate.

Recent mortgage broker market index figures show that December 2011 was a strong month for those borrowers taking out a hybrid tracker mortgage deal. The mixed product is considered to be the most highly innovative product launched for a decade and, while deals are not complicated first-time buyers would benefit from broker guidance when trying to arrange a deal.

However many high street lenders are sticking to traditional fixed products which have the lowest initial pay rates but, with current stagnation in the housing market it would be advantageous for borrowers to see more innovative products launched by lenders .

Some borrowers are showing reluctance in taking on long term fixed rate deals knowing variable mortgage rates could remain low for the foreseeable future. However, the same borrowers are also anxious over the potential new rates that will need to be paid, when a standard variable deal ends.

The hybrid tracker mortgage offers the best of both worlds for borrowers wanting to make the most of lenders low variable rates currently on offer, while allowing them to secure a longer term fixed rate at lowest ever levels.