Tracker Mortgages

If you like the idea of a mortgage which follows the Bank of England’s Base Rate, then a tracker mortgage could be what you are looking for.

With a "Tracker Mortgage" the interest rate tracks whatever rate is set by the Bank of England usually with differential. In practice this means that your monthly mortgage interest payments with go up when the base rate goes up and go down when the base rate goes down.

Benefits and disadvantages of a tracker mortgage?

A tracker mortgage is a variable rate mortgage, which always follows the Bank of England’s Base Rate, so your payments will change in accordance with external market interest rates. You will quickly benefit from any rate reductions but you need to bear in mind that base interest rates don't just go down. As and when the Bank of England raises UK interest rates, the cost of your tracker mortgage will also rise.

Information about: Discounted Mortgages | Fixed Rate Mortgages | Flexible Mortgages