Looking for a tracker mortgage but not sure where to start? We get it, they can be complicated. But that’s where we come in. Here at Mortgage & Lifetime Solutions, we can help take the stress and complexity away from your next mortgage deal. With 25 years of experience to fall back on, we proudly offer support with getting Tracker Mortgages in Surrey and the surrounding areas.
How Tracker Mortgages Work
Put simply, tracker mortgages follow (or track) the Bank of England base rate. In Plain English, this means that as interest rates fall, you will pay less interest on your mortgage. However, if interest rates rise, you will pay more interest on your mortgage.
Tracker mortgages are similar to variable-rate deals, but they have one key difference – trackers generally follow an external interest rate. This means that lenders can’t charge interest rates to suit them – which is often the case with variable-rate mortgages.
The base interest rate that your tracker follows will generally increase when the economy is booming, and go down when times are tougher. This means that you will pay less interest during a recession, but more when things improve across the country.
