Tracker Variable Rate Mortgage Information

 

A Tracker Rate mortgage is similar to a Variable Rate mortgage except that the rate will move up and down in line with the Bank of England base rate. This rate is reviewed once a month, and any change in the Bank of England rate will affect your mortgage rate by the same amount.

 

Advantages:

 

Rate is not determined directly by your lender but by a committee at the Bank of England

 

Any decreases in the Bank of England rate will decrease your mortgage payments

 

Disadvantages:

 

Your payments will go up if the Bank of England rate goes up

 

Does not give you the ability to budget for repayments as easily