Fixed rate mortgage vs tracker
The benefits of a fixed rate vs. tracker mortgages are often debated by customers, but it really depends on your own circumstances, including:
- Whether you could afford it if your payments went up, as they could with a tracker mortgage
- If you'd rather opt for the security of a fixed rate
A tracker mortgage is so called because it tracks the Bank of England’s base interest rate. Although the starting rate is generally set by the provider, interest rates will henceforth go up or down depending on the base rate. These mortgages benefit from any rate cuts that are introduced by the Bank of England. However, it should be remembered that they may also be subject to increases depending on the current financial situation.
Fixed Rate mortgages offer customers a guaranteed fixed rate of interest for the duration of an agreement. This means that customers will not be subjected to any unexpected interest increases, and monthly mortgage payments are much easier to budget for.Now that you’ve had some more information on fixed rate vs. tracker mortgages, it is recommended to compare the different mortgage deals that are available. See our comparisons tables for a wide range of mortgage deals.
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