Mortgage Considerations

Tracker

A Tracker mortgage is a variable rate mortgage where the interest rate always follows the Bank of Englandís Base Rate.

Mortgage Considerations

Get a Free Quote Who should consider a Tracker mortgage
A Tracker mortgage like any other mortgage product will be more suited to some borrowers than others.
Home buyers who want cheap initial payments, perhaps when all their other bills are being met but are less concerned about a rise later may find a Tracker suitable. The first time buyer market has a number of incentives and they are often linked with Tracker mortgages. The low initial Tracker rate can be part of those incentives.

Borrowers who always keep one cautious eye on the Bank of England base rate and expect it to rocket at anytime soon may find the Tracker mortgage unsuitable. They will be nervous of the rises in their out-goings that a rate rise will cause at short notice. If rumours of bubbling base rates are the kind of thing that gives you sleepless nights then a Tracker mortgage can only add to your concerns.

On the other hand house buyers who view the economic climate with informed confidence will not want to miss out on a base rate drop and will only be uncomfortable if they are fixed to a higher rate.

For borrowers who have a preferred lender or will only deal with household name high street lenders the Tracker mortgage will be easy to find. There will be no need to use specialist lenders. However, with the range of Tracker mortgages on the market comparison of like for like is not always easy and an approved broker may be able to give vital advice that saves you money in the long run.

The Tracker mortgage has the added credibility of that link to the Bank of England base rate and some borrowers find that comforting as it adds a wider dimension to their mortgage. The mortgage is linked to the current national economic health and it gives the borrower the chance to benefit when those times are good. However as has already been mentioned the risk is that if the unpredictable nature of world economics forces the Bank of England rate up, the Tracker will suffer accordingly.

Online Mortgage Enquiry and Quote

Online Enquiry...

If you would like to receive a quote for a mortgage from a broker please
Click here...

Mortgage Calculator

Calculate

Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

Affordability Calculator

Calculate
Get a Mortgage Quote

Mortgage News Feed Mortgage News Feed

Questions & Answers

Read about general questions asked by brokers and lenders and the best ways to answer...

Mortgage Glossary

Search for terms beginning with the letter:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z