The Tracker Mortgage

A tracker mortgage is quoted at a fixed percentage above the Bank of England Base Rate. As the base rate fluctuates, so does the tracker mortgage rate. This means that all of those very lucky homeowners who held a tracker mortgage before the recession began and the Bank of England Base Rate dropped dramatically, are now paying as little as 0.60% for their mortgage loan, meaning a fraction of the usual monthly cost.

Tracker mortgages are still available and at very good rates – some of the best around, They can be found on the market from as little as 1.99% and whilst the Bank of England Base Rate continues to be low many people are selecting tracker mortgages as the preferred option.

Tracker mortgages are usually for a set period of time between one and five years and would usually incur early repayment charges should you redeem the mortgage before the end of the product term as with fixed, discount mortgages etc.