Tracker mortgage rates are increasing in line with the Bank of England base rate, but fixed rate mortgage borrowing costs are falling as lenders make significant efforts to accommodate borrowers needs.
What is a Tracker Mortgage?
A tracker mortgage is a type of variable-rate mortgage where the interest rate tracks a specific benchmark, most commonly a central bank rate like the Bank of England Base, at a set margin above or below it. This means that if the benchmark rate changes, the rate on the tracker mortgage will change accordingly.
For example, if you have a tracker mortgage that is set at the Bank of England Base Rate plus 2%, and the base rate is 1%, your mortgage interest rate would be 3%. If the base rate moves up to 1.5%, your mortgage rate would increase to 3.5%, and so on.
If you are on a tracker mortgage, now is a good time to consider switching to a fixed rate mortgage and locking in a lower rate. Get in touch with us today on 0203 645 4322 to learn about your options.