What is a Tracker Rate Mortgage?

A tracker mortgage is a mortgage that tracks another rate. Most track the Bank of England Base Rate (BBR), however they can also track LIBOR (Lenders InterBank Offered Rate). The actual tracker rate can be set at a percentage above or below the rate it is tracking. For example, if the BBR rate is 3% and the lender offers a tracker rate of 1.5% above BBR the interest rate charges on the mortgage would be 4.5%. Like a discounted rate, tracker mortgages mean that the actual monthly mortgage repayment you make may vary.

To find the best tracker rate for you, talk to one of our experienced residential mortgage advisors on 0845 148 9165.