Tracker Mortgage
A Tracker Mortgage tracks the Bank of England base rate by a specified percentage for a specfied period of time ie 0.85% above base rate.
Pro's
- You will benefit from decreases in the base rate.
Con's
- You will be paying more if the base rate increases.
- There maybe early repayment charges.
- Budgeting can be more difficult as monthly payments can fluctuate.
- You may have a collar, which means your rate can only decrease to a certain point.