A tracker mortgage is a type of mortgage which usually tracks the Bank of England Base Rate.
The word ‘tracker’ is used to indicate how the interest rate of the mortgage will move up and down. It’s important to understand that the interest rate will not be the same as the Bank of England Base Rate, instead the rate of the mortgage will usually be a few base points higher.
This type of mortgage is great for when there is a decrease in the mortgage interest rates but they do come with their cons too. You should always seek advice before taking out a mortgage to ensure you fully understand all the features of a product.
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