Base rate tracker mortgages
UK Tracker Mortgages
Although most lenders chose to follow the Bank of England's interest rate as far as their own standard variable rate (SVR), they do have the right to change it.
Base Rate Tracker Mortgages bypass this by mirroring exactly any changes to the base rate, whereas variable rate mortgages follow the SVR.
The interest on the mortgage is charged as a set percentage. This would normally be between 1 and 2 per cent above the base rate and remains constant for the period of the mortgage term. The can revert to the SVR at any point during the life of the loan, unless it is stated the tracker will only run for a set period of time at the outset.
They do offer a certain amount of security as the rate is guaranteed never to exceed the base rate by more than a fixed margin.
There are three types of Tracker mortgages;
- Fixed Tracker — The rate is fixed for a period of time.
- Discount Tracker — Discounts are follow the base rate and can be built into the beginning of the mortgage term.
- Capped Tracker — The rate would follow the base rate but with the additional security of a cap to prevent it from rising above a set level.
This mortgage allows you to benefit from any drop in the interest rates immediately.
Apply for a UK Tracker Mortgage
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
This site is intended for UK residents only. The overall cost for mortgages for comparison is % APR. The actual rate will depend on your circumstances. APR variable and based on a usual case. There may be an additional charge for advise on these loans.
Cheap Mortgages is a trading name of Grovelawn Limited, which is authorised and regulated by the Financial Services Authority.
Grovelawn Limited is Registered in England & Wales number 5030300. Registered Address: 98 Station Road, Sidcup, Kent, DA15 7BY.
Entered on the Financial Services Authority's Register - Register Number: 314204 - Consumer Credit Licence Number: 573287
The Financial Services Authority (FSA) do not regulate some types of buy to let, commercial, overseas mortgages, tax advice and credit or loans not secured on property.
