| Also referred
to as the ‘base rate tracker mortgage’, this sort of mortgage will
accrue interest at a rate tied to the Bank of England base rate. They will not
usually follow the Bank of England base rate directly, but at a designated percentage
above or below it. The difference between the base rate and the tracker rate will
remain constant throughout the term of the mortgage.
This type of mortgage will benefit the borrower from any drops that occur in
the Bank of England base rate, which are not always fully realised in variable
rate mortgages, as lenders do not always pass on cuts in the base rate 100%. The
tracker mortgage will follow the Bank of England base rate no matter how low it
drops, where other mortgages may not.
A few variations are available on the tracker mortgage. You can get tracker
mortgages that will track the base rate for the entire term of the mortgage or
for a specific period of time. Find out all about your mortgage before you apply
and remember to look out for opt out clauses with the tracker mortgage UK.
• Bad credit mortgage
• Buy to let mortgage
• Cashback mortgage
• Flexible mortgage
• Let to buy mortgage
• Remortgage
• Tracker mortgage
• 100% mortgage
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