Tracker Rate Mortgages / Remortgages
A tracker rate remortgage is basically a variable rate remortgage. The interest rate will change over time but unlike normal variable rate remortgages, they are set at a fixed percentage above the Bank of England base rate. Therefore, changes in the Bank of England base rate will have a dramatic effect on the interest rate. Tracker rate remortgages are however, cheaper than standard rate of the lender during the tracker rate remortgage term. In most cases, tracker rate mortgages / remortgages are set higher than the Bank of England base rates but lower than the lender standard variable rates.
A tracker rate mortgage is set to cost a certain percentage above the Bank of England base rate. A tracker rate mortgage / remortgage is directly linked to an interest rate and for a set period it will cost a set percentage above this rate. In a nutshell, a tracker rate mortgage / remortgage is a variable rate mortgage that changes rates depending on interest rates set.
Example, the base rate is 1.5% and the tracker rate mortgage is set at 1% above the base rate. Then the rate you will have to pay is 2.5%.
If the base rate increases then the rate for the tracker rate mortgage will also increase proportionally.
At Go Remortgage, we have a range of tracker rate mortgage / remortgage deals to suit your individual circumstances and our expert FSA regulated mortgage advisors are here to provide you with no obligation free advice and expertise. Why not contact us for free no obligation advice about your next step.
Tracker Remortgages are also another popular form of remortgage and in essence it is just another type of variable rate remortgage.
