Mortgage tracker rate
Most mortgage lenders offer the Base Rate Tracker mortgage. This type of mortgage scheme is linked to the Bank of England Base Rate.
For example: Bank of England official rate 0.5% plus 1.5% offered by the lender. Therefore the mortgage rate charged is 2%. The mortgage lenders offer similar period schemes to fixed and discounted rates such as 2 and 3 years; early repayment charges apply.
The Bank of England rate is based on economic conditions and tends to be assessed monthly by the Monetary Policy Committee.
Most mortgage lenders apply restrictions to low level base rates; and you must speak to your mortgage provider to confirm this.
The base rate mortgage suits those who can comfortably afford the mortgage based on an affordability check. Our mortgage broker will advise the right mortgage deal based on your circumstances.
From 2008-2011, many borrowers whom are on Base rate mortgages have seen favorable conditions and lower payments. Please note, this isn’t the norm and rates are expected to rise as the economy improves.
If you needs mortgage advice on tracker rate mortgages, please speak to you one of our experienced advisers. We do have access to the whole mortgage market and we’ll source the best tracker rates for you.