What is a Tracker Mortgage?A tracker mortgage 'tracks' the Bank of England base rate, meaning your mortgage stays in line with interest rates and the market in general. The result on your monthly mortgage interest payments is that they go up when the base rate goes up and go down when the base rate goes down. A tracker mortgage works in a similar way to a standard variable rate mortgage in that it follows the rate imposed by the Bank of England. Whereas the standard variable rate mortgage changes monthly or annually a tracker mortgage usually guarantees to follow changes in the bank base rate within 14 days of it happening. Thereby the borrower benefits from both falls and rises in the interest rates sooner. A tracker rate is one that has a fixed differential to the Bank of England rate and is contractually bound to change within a certain time of the Bank changing its rate. Thus, the tracker mortgage might follow the base rate up and down as it fluctuates. The mortgage lender will make profit by charging an amount over the base rate. This kind of mortgage is useful for people who are happy for their outgoings to change, but want their mortgage to reflect the changing costs of borrowing. Tracker mortgages are often suited to borrowers who are looking for cheap initial payments and can take the risk that their payments could increase at a later date. The main difference from a variable rate mortgage is that a tracker mortgage will be guaranteed to go up and down with changes to the interest rates. A variable rate mortgage will not. There are three basic types of tracker mortgages: ones that track the base rate for the life of the loan; and those that run at an agreed differential to the base rate for a given amount of time before returning to the standard variable rate; and finally those in that the lender promises that the difference between the base rate and the mortgage rate will not go beyond a certain level. When people are remortgaging, it's tempting to be attracted to the best mortgage rate on the market, which often tends to be a discount or a tracker mortgage. You may freely reprint this article provided the author's biography remains intact: About The Author John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
MORE RESOURCES updated Tue. March / 19 / 2024 Pros And Cons Of Refinancing A Car Bankrate.com Current Student Loan Interest Rates in March 2024 Business Insider How to Refinance Your Mortgage NerdWallet Will Interest Rates Go Down in April 2024? | Mortgage Rates Forecast The Mortgage Reports When to Consider Refinancing Your Mortgage Business Insider Mortgage Relief and Mortgage Assistance Programs [2024 ] The Mortgage Reports Mortgage Rates This Week NerdWallet Mortgage Interest Rates Today, March 16, 2024 | Rates Tick up Business Insider Mortgage Interest Rates Today, March 14, 2024 | Rates Are Still on Track to Go Down This Year Business Insider Mortgage Interest Rates Today, March 17, 2024 | Sticky Inflation is Keeping Rates Up Business Insider Best Mortgage Refinance Lenders of March 2024 Business Insider Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports Mortgage Interest Rates Today, March 13, 2024 | Rates Are Back Down Following Yesterday's CPI Report Business Insider What Is An Interest-Only Mortgage? Bankrate.com Save up to $1,500 on a Mortgage Refinance With the New FHFA Program Business Insider How Soon Can You Refinance a Mortgage? NerdWallet Best Mortgage Refinance Lenders In 2024 Bankrate.com Mortgage Interest Rates Today, March 15, 2024 | Rates Drop for Second Week in a Row Business Insider Can You Refinance With No Income Verification in 2024? The Mortgage Reports Best Refinance Lenders of March 2024: Refinance Your Mortgage The Motley Fool Rates drop - Mortgage rates for March 11th, 2024 Bankrate.com Mortgage Rates Dip Below 7%. Recent Homeowners Race To Refinance. Realtor.com News When to Refinance Mortgage: Is it Time? - Buy Side from WSJ The Wall Street Journal Best Student Loan Refinance Companies In March 2024 The College Investor Current mortgage refinance rates CNN Underscored Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports How Soon Can You Refinance a Mortgage Loan? 2024 Rules The Mortgage Reports Current 15-year refinance rates — and lenders that offer them CNN Underscored The best mortgage lenders for refinancing in March 2024 CNN Underscored Mortgage Interest Rates Today, March 12, 2024 | Rates Are Down, and They May Drop Further in the Coming Months Business Insider How To Refinance An Underwater Mortgage Bankrate.com Mortgage Rate Forecast February 2024 Bankrate.com Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider What Credit Score Do I Need To Refinance? Bankrate.com Mortgage Applications Increase By 7.1% Amid Rate Drop, Refinance Activity Spikes National Mortgage Professional Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau Build Your Future with Tara's Mortgage Company St. Albert Gazette CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor 30-year refinance rates: What to know CNN Underscored Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider 30-Day Mortgage Rates Fall for a Fifth Day Investopedia How To Get The Best Refinance Rate Bankrate.com Should You Refinance Halfway Through Your Mortgage? Bankrate.com The Sales Pitch for an 8% Mortgage: Buy Now, Refinance Later—for Free The Wall Street Journal
|