New Mortgage Guides

Other Mortgage Guides

Mortgage Types

Mortgage Tools

Financial Services > Mortgages > Mortgages News

Leeds states Maradona effect may help tracker mortgages

Bookmark and Share

Leeds Building Society has stated that tracker mortgages share some traits with Argentinean football legend Maradona.

Controlling expectations � the 'Maradona effect' � is key to the success of tracker mortgages, claims Karen Wint, head of marketing and public relations at Leeds.

Ms Wint cites Mervyn King, the governor of the Bank of England, who likens expectations in the property market to England's defenders in the 1986 World Cup, who expected the striker to turn, when in reality he ran in a straight line.

Property prices may rise and fall due to expectations of interest rate hikes and dips, whereas tracker mortgages continue based on the bank's base rate.

If the Bank of England suggests that interest rates may have to rise to bring the economy off the boil, market expectations will increase swap rates, forcing lenders to increase their fixed rates and result in the consumer paying more for their mortgage, said Ms Wint.

As a consequence, the end result is achieved by controlling expectation and without any real change in path, just as it was by Maradona in 1986.

The market does however expect the next Bank of England base rate change to be an increase and the 'Maradona effect' can work in favour of tracker mortgages.

Leeds has also launched a new tracker mortgage, at 0.25 per cent above the Bank of England base rate, with fee help for customers.

Louise Cuming, an expert at Moneysupermarket, recently stated that tracker mortgages offer good value in the long-term to UK buyers.

Bookmark and Share

Recommended Links

Copy and Paste the following HTML into your page.

Receive Mortgage Advice from a Regulated Advisor

Mortgage advice

There is no better time to be seeking suitable mortgage advice from a Regulated mortgage advisor

Submit your details today for an obligation-free chat and a regulated mortgage advisor will call you back to help you find the mortgage that best fits your needs.

We will only provide your details to one regulated advisor.

Your mortgage

 * Help
 * Help
 * Help

About you


Questions marked with * are required

Please be aware that the advisor who contacts you will be a third party advisor who has no connection with us. There is no charge to you for using this service. We are paid by charging your assigned advisor a fee for this service. Any advice or assistance given to you by a third party advisor does not represent our advice or assistance and is not checked or endorsed by us. It is your decision whether or not you act on any advice or assistance you are given.

By clicking “Proceed” you confirm that:

  • You accept our Terms of use and
  • You would like to be contacted by a regulated third party advisor to discuss your needs.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Financial Services Net Limited and other trusted 3rd parties would like to keep you advised via e-mail or telephone of products, services and other exciting offers we think may interest you. Please untick this box if you do not consent to us contacting you for further information.

news news rss
Mortgages News

Huge rise in number of cheap five-year fixed-rate mortgages

All hail the return of the 100% mortgage

Spare bedroom 'could slash mortgage by 29 months'

Mortgage lenders

Browse mortgage lender offersMortgage Rates by Lender

  • Browse current mortgage offers from over 90 lenders.

Worried about mortgage repayments?Worried about Mortgage Repayments?

  • Join our petition to Government to bail out burdened individuals, not just banks.

Free mortgage quoteFree Mortgage Quote

Mortgages in Scotland Mortgages in Scotland

Equity releaseEquity Release

  • Unlock equity in your home.

Switching mortgagesSwitching Mortgages

Home reversion plansHome Reversion Plans

Commercial mortgages Commercial Mortgages

  • Commercial property loans
  • Starting a business?

Arrears & CCJs?

  • Remortgages
  • Sub prime mortgages
  • Arrears, CCJs
  • Self certification
  • Debt consolidation

Protect your mortgageProtect Your Mortgage

  • 3 months free mortgage protection cover

Mortgage Newsletter