Banks 'to make billions from trackers'

Ray Boulger, senior technical manager at John Charcol, says there has been a substantial increase in clients looking to take out trackers in the last two months because fixed rate deals are increasingly uncompetitive. However, banks are charging hefty margins on trackers as the cost of funding deals falls. Three-month London Inter Bank Offered Rate (LIBOR) - the rate at which banks lend to each other - fell to a record low of 0.69% last week. Swap rates also fell last month due to the Bank of England's decision to extend its quantitative easing programme by £50bn. These falls shoul...