Mortgages - Trackers

You are guaranteed with a tracker rate that any change in the Bank of England base rate will then be passed onto your mortgage rate from the lender, this is due to the fact that the tracker rate is directly linked to the Bank of England base rate. 

This percentage is fixed and the rates are set at a percentage above the base rate, so if the base rate does drop by say 0.5% then your tracker mortgage will drop by 0.5% too.

Richard says:

This option is great when the Bank of England base rates are low or reducing, not so when rates are high or rising

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE