Tracker mortgages follow the Bank of England’s base interest rate, rising and falling in line with rate changes.
Independent Mortgages Direct NE can help you arrange a great value tracker mortgage. With access to every lender and mortgage provider in the UK, we have a whole of market choice, saving you time, money and hassle when trying to find the right tracker mortgage. Call us now on 0800 0350095 to talk to one of our experienced, friendly team about your current situation and what we can do to help.
What is a tracker mortgage?
A tracker rate mortgage follows the ups and downs of the interest base rate. Usually, your rate is set at an agreed percentage above the base rate (for example 0.5% above) for a set period. Some tracker mortgages last for the entire mortgage term (lifetime trackers), but most have a specified tracker period before returning to fixed or standard variable rates.
Is a tracker mortgage right for you?
A tracker mortgage isn’t right for everyone. It’s worth considering the following advantages and disadvantages:
- If the base rate falls, then your interest payments are reduced
- There is usually a cap on how much more you will pay above the base rate
- However, if the base rate rises, then so do your monthly payments
- Your deal may have early repayment or switch charges
- Some tracker mortgages have a set minimum interest rate, meaning that if the base rate falls below this you won’t see the benefit
Call us on 0800 0350095 for a FREE consultation with one of our friendly and experienced team. We are happy to discuss your situation and help you choose the best option for you.