Tracker Mortgages
Rather than following the Bank of England’s base rate as SVR Mortgages outlines above, Tracker Mortgages are tied to a base rate, usually the Bank of England’s. Rates are set a certain percentage above the Bank of England’s rate and are guaranteed to reflect any increases or decreases. The principle is with falling rates; borrowers profit, rising rates, borrowers carry the cost. Early Repayment Charges may apply.
