Tracker Mortgage
A tracker mortgage is a type of variable-rate mortgage that follows another interest rate, usually the Bank of England base rate.
1 min read Buying a Home
What it means
A tracker mortgage is a type of variable-rate mortgage that follows another interest rate, usually the Bank of England base rate. Your mortgage rate moves up or down when the tracked rate changes.
Example
Your mortgage tracks the base rate plus 1%. If the base rate rises by 0.25%, your mortgage rate also rises by 0.25%.
Why it matters
It helps you understand why your repayments may change.
Tracker mortgages clearly explain which rate they follow and by how much.
Is every variable-rate mortgage a tracker?
No. A tracker is one type of variable-rate mortgage.