Compare BTL Tracker Mortgage Rates
The period for which a buy to let tracker mortgage can active may vary depending on the type of policy that has been agreed. Typically trackers in the UK will track the Bank of England Base Rate at a fixed level e.g. 2.5% above base rate. Lenders will typically offer tracker deals for a fixed term e.g. 2 years or increasingly many lenders are now offering lifetime tracker products. Of course, most mortgages will last longer than a period of one or two years, once a policy has run its course, the mortgage agreement will usually revert to a standard variable rate agreement.
Choosing a mortgage tracker deal means taking on the risk that interest rates could rise and you are left paying more for your mortgage but conversely if you feel rates may remain low a tracker deal could save you money in the longer term relative to a fixed rate deal. Many lenders will allow over-payments without penalty which means that if you save money through lower interest rates you can reduce your overall mortgage liability.