Tracker Mortgage

Linked to the Bank of England Base Rate

The interest rate charged is linked to the Bank of England base rate plus an agreed excess, normally up to 1%. The lower the excess, the closer to base rate so the better the deal. The interest rate will normally track the base rate plus an excess for the life of the mortgage - a lifetime tracker. However lower discounted or fixed rate may also be available short term.

Base rate is normally lower than a lender's standard variable rate so base rate trackers provide a competitive deal throughout the mortgage term, reducing the need to re-mortgage on a regular basis.

It is important to remember that base rate will go up and down so the interest charged will rise and fall accordingly. Base rate tracker mortgages are often linked to flexible mortgages which allow overpayments, underpayments and payment holidays.

To search for the best tracker rate mortgage deal in the UK click here.

Your home may be repossessed if you do not keep up repayments on your mortgage. Memigo Money provides information but does not sell or provide advice on mortgages or their suitability. There may be a fee for mortgage advice; the precise amount depends on your circumstances.

For adverse credit mortgages the overall cost for comparison will vary, the actual rate available will depend upon your circumstances. Ask for a personalised illustration.

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