Tracker Mortgage

Often referred to as a “base rate tracker” these mortgages follow the Bank of England Base Rate. The base rate is controlled by the Bank of England and they meet every month to discuss fiscal policy (details at www.bankofengland.co.uk).

There will normally be a difference in the interest rate charged to you the borrow and the rate set by the Bank of England, this is often call the differential. For example if you take a base plus 2% tracker then you will pay 2% above the Bank of England rate. As of 28th November 2014 the Bank of England rate is 0.5% so using this example you will pay 2.5% interest on your mortgage.

There are some tracker deals available where there is a preferential rate for the early years and in this situation it would be common for the lender to charge exit penalties (early redemption charges).

Another common tracker deal is a lifetime tracker where you would pay the same differential over the base rate for the life of your mortgage.

For further information and advice or to arrange a consultation please contact us.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

FOR MORTGAGES WE ARE PAID BY A COMBINATION OF COMMISSION AND FEES, OUR TYPICAL FEE IS £395.