A tracker mortgage often known as a base rate tracker mortgage, is linked to the Bank of England base rate rather than linked to the mortgage companies standard variable rate. The Bank of England base rate is reviewed each month and therefore a tracker mortgage gives the borrower the certainty of knowing that their payments will rise and fall with any changes. A base rate tracker mortgage is usually charged at base rate plus a set value ie.
Bank of England Rate is 5.75% you Tracker Mortgage is Base Rate +1% therefore you will be paying 6.75%
There are variables to tracker mortgages in that like a discounted mortgage where you can get a set discount for a period of time off of a variable rate mortgage you can get a discount for a set period off of a base rate tracker mortgage.
Tracker Rate Mortgage Pros
Tracker Rate Mortgage Cons
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