With a tracker mortgage, your monthly repayments are determined by an interest rate that follows the bank of England’s current base rate.
If the base rate goes up, so will the amount you pay for your mortgages and likewise if the rates are lower. You should think very carefully about taking out a tracker mortgage before you finalise your decision because the unexpected monthly costs may leave you with no financial leg room.
Tracker mortgages are typically best suited to: Those who have a lot of savings already, as they can afford to make payments each month even if they are higher, high earners and those with a comfortable income, buy to let property owners may want to consider the tracker mortgage option as it creates a potential for making profit and interest rates are tax deductible.
If you think that a tracker mortgage deal would suit your requirements, we have listed a few in the product comparison tables below.
There are many benefits to tracker mortgages, some of which include: Cheaper payments if interest rates are low, you do not have to be tied to the same mortgage for a long time if you do not want to, initial costs are usually low and some tracker mortgages allow you to underpay and over pay depending on your financial situation.
If you have decided that a tracker mortgage is the right one for you, then you may want to think about keeping an eye on the current bank of England base rate. This will help to determine whether it is a good or bad time to take out a tracker mortgage deal.
There is a plethora of tracker mortgage deals that are presently available on the market. Researching and comparing mortgage policies and prices will provide you with a better image of what you are looking for.
Think mainly about what you will personally require from a tracker mortgage. See our comparison table above for some tracker mortgage deals that may interest you.