'Tracker Rate' Mortgage
A 'tracker rate' does just that - automatically tracks the movements of an indicator such as the Bank of England Base Rate.
Anyone currently with a 'tracker rate' will have seen their mortgage payments reduce with the recent Bank of England Base Rate cuts. The same could not be said for those with Standard Variable Rate (SVR) loans where lenders have not 'passed on' the Base Rate cuts!!
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: -
- No fee. We will receive commission from the lender when your mortgage completes.
Or
- A fee. A fee of typically £580 payable on completion of your mortgage. Any commission received from the lender will be refunded to you.
Or
- A combination of a fee & commission. A fee of typically £280 payable on completion of your mortgage In addition we may receive commission from the lender.
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How about a 'Tracker Rate' Mortgage?
Most 'tracker rate' mortgages are linked directly to the Bank of England's base rate, rather than being linked to the lenders' higher, standard variable rate (SVR).
The benefit of a 'tracker rate' is particularly relevant in today's mortgage market. The Bank of England are reducing the base rate, which reduces the 'tracker rate', whilst lenders are not reducing their standard variable rate.
Likewise of course, an increase in the Bank of England base rate will result in an immediate increase in the payments on a 'tracker rate' mortgage (although most lenders don't usually hang around to increase their SVRs at the same time!
You don't have the 'guaranteed' payments of a 'fixed rate' scheme to protect you from rate rises (not a good idea if you're on a tight budget).
However at the moment, 'tracker rates' are proving to be a great way to benefit immediately from interest rate cuts.
Tracker Rate schemes can be offered for both short and medium term periods (typically 2, 5 & 10 years). They are also available for the lifetime of the mortgage!!
Shorter term 'trackers' will normally include a 'tie in' (or penalty should you repay the loan during the tracker period). Currently, however THERE ARE A NUMBER OF REALLY ATTRACTIVE 'LIFETIME TRACKERS' that have NO 'TIE INS'!!
These are well worth a look at - just ask us to review the market place and provide hassle free, impartial advice!!!
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid: -
- No fee. We will receive commission from the lender when your mortgage completes.
Or
- A fee. A fee of typically £580 payable on completion of your mortgage. Any commission received from the lender will be refunded to you.
Or
- A combination of a fee & commission. A fee of typically £280 payable on completion of your mortgage In addition we may receive commission from the lender.
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