Tracker Mortgage

Also known as a Tracker Mortgage, this type tracks the Bank of England interest rate for a set period of time. For example, 2% above the bank rate for 2 years. When the bank rate changes, as will yours.

This kind of mortgage tends to suit people who are looking for a competitive deal, but also have enough scope in their monthly budget to cope with any change in monthly repayments.

Is it right for you? Here's what you need to weigh up..
Pros:

If the bank interest rate falls, then your monthly repayments will fall with it

Cons:

If the rates rise, then your monthly repayments will increase. In 2017, the Bank of England raised base interest rates from 0.25% to 0.5%. It is predicted to rise more over the next 3 years. This is something to consider


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