Tracker

Advantages of a Tracker mortgage
Tracker mortgages are often offered with competitive introductory incentives such as a good margin below base rate for the first two years. This can mean low initial payments with the added chance of further drops if the base rate falls.

Good Deals Available
As popular mortgages with plenty of competition in the market good Tracker deals are available in most places and there is the opportunity for borrowers to pick their favoured lender without having to hunt around specialist lenders. The Tracker mortgage enables a borrower to take full advantage of favourable economic trends and if their initial margin was below base rate and large enough they might see considerable savings.
The Tracker mortgage rates with their incentives may generally be more competitive than a Fixed Rate mortgage over the same period.

Tracker Mortgage Savings
For borrowers who don’t want to get caught paying back a high rate to their lender when the base rate has dropped and perhaps dropped again the Tracker comes into its own. Depending on the Tracker chosen the lender should have no choice but to pass on the savings in a short amount of time. As usual the small print will detail the swiftness with which the lender must mirror the change in the Tracker but as the point of the Tracker is to follow the base rate it should be within the month.

The shorter the period of time that you choose for your Tracker then that generally corresponds to the lower rate that you will have to pay. Taking a Tracker for two years for instance will usually enable you to get a more competitive rate.

Tracker mortgages can be arranged with flexible features such as over payment options but this will depend on the lender. There are also options to arrange Cash Back Tracker mortgages in line with the incentives that are often aimed at the first time buyer market.