Mortgage Lifetime & Solutions offers professional and impartial tracker mortgage solutions in Bromley. Our friendly and knowledgeable advisor, Robert White, has decades of experience in the mortgage sector. With our wealth of experience and expertise in the industry, we provide sound advice that helps you easily acquire the home you want.
Tracker Mortgages Defined
A tracker mortgage is a type of loan where the lender bases the interest rate on two things: an external rate (usually from the Bank of England) plus a fixed percentage. Tracker loans are variable-rate mortgages. This means that the total amount you pay can change each month.
How Tracker Mortgages Work
When you make payments, a part of it goes to the money you’ve borrowed (the principal). The other part pays for the interest charged by your lender. If your periodic payments rose due to an increase in the base rate, the additional money you paid would only cover the risen interest charges. This means you’re paying more without clearing a larger proportion of your loan.