As the economic downturn wears on, many borrowers are looking to remortgage to a tracker deal to take advantage of decreasing interest rates.

Experts have said, however, that those looking to remortgage to tracker deals should act quickly, as lenders increase the cost of tracker mortgages in the face of the credit crunch.

Intelligent Finance, for example, increased its three-year tracker deal from 1.34 points over base rate to 1.59, and Woolwich has raised tracker rates by 0.4 of a point.

Customers are also advised to read the small print before remortgaging, as some tracker deals have limits as to how low borrowers’ pay rates can go.