Tracker Mortgages

A tracker mortgage is a type of mortgage loan that follows the Bank of England base interest rate. A tracker mortgage, or base rate tracker mortgage, is a variable rate loan that changes rates depending on the level of interest rates set.

Generally, but not always, tracker mortgages are set higher than the Bank of England base rate but lower than lender standard variable rates. A tracker mortgage is anchored to a prevailing rate, usually the Bank of England Base Rate, and is set to cost a percentage, or fraction of a percentage, more than this rate.

If the base rate falls, the interest payments on your mortgage loan will fall accordingly. However, remember that the bank base rate can rise as well as fall which can make budget planning difficult.

Your home may be repossessed if you do not keep up repayments on your mortgage.