Our lead mortgage advisor, Robert White, is here to assist you with all of your tracker mortgage needs in Crystal Palace and beyond. We invite you to reach out to us today if you want honest, clear, and professional mortgage assistance from an industry expert with years of experience.
For more information on tracker mortgages and to find out whether they are a good fit for you, continue reading below.
What Are Tracker Mortgages?
Tracker Mortgages are loans provided by lenders based on a fixed percentage and an external rate. As such, your monthly repayments are subject to change. And when you make your monthly payments, a portion of it goes toward your principal, which is the total amount of money you borrowed from the lender.
The remainder of your payment is reserved for paying down on your interest. This amount is set by the lender for loaning you the money. So if your base rate increases one month, for example, your usual monthly payment would just cover the higher interest fees.
When this happens, you are essentially paying more on your loan without actually paying it down. Why would you want to go with a tracker mortgage if this is the case? Read on to find out.
