Mortgage Knowledge Base
A tracker interest rate mortgage is a type of mortgage where the interest rate you pay is linked to a specific rate or index.
The most common type of tracker mortgage in the UK is linked to the Bank of England Base Rate. This means that if the Bank of England Base Rate changes, your monthly payments will also change
For example, if the base rate rises by 0.25%, your monthly payments will also increase by 0.25%.
If you are expecting interest rates to go up in the near future, a tracker mortgage may not be the best option as your monthly payments could go up quickly.
Speak to a whole of market mortgage broker to see if a tracker mortgage is the best option for you.
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