Whereas Standard Variable Rate mortgages tend to follow the Bank of England’s base rate, Base Trackers are tied to it. Lenders set Tracker Rates a certain percentage above or below the Bank of England’s rate and guarantee to mirror any increases or decreases.
If rates are falling, borrowers profit. However, they can be costly if interest rates rise.
Your property may be repossessed if you do not keep up repayments on your mortgage.
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