UK Tracker Mortgage Best Buys
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The good thing about tracker mortgages is that when interest rates fall, so do your payments - immediately! But it also means that they can go up quickly as well.
What is a tracker mortgage?
The tracker mortgage is a popular product in the UK. When people are remortgaging, it’s tempting to be attracted to the best mortgage rate on the market, which often tends to be a discount or a tracker mortgage.
What are the current best UK tracker mortgages?
Things obviously change all the time but the following providers are who we consider to be the best. Nationwide has overall costs for comparison at 6.4% with initial rates at around 5.98%. Abbey National offer an initial rate of 5.84% and HSBC offer an initial rate of 5.69%. Especially with the current mortgage climate, if you are considering a tracker mortgage at this time (whether remortgage or new house purchase) you can arrange to have a tracker rate mortgage expert contact you to illustrate which mortgage is best for your personal needs. Simply fill out this form and a representative will contact you today:
What is the difference between a discount mortgage and a tracker mortgage?
Discount rates are linked to the mortgage lenders standard variable rate (SVR) which is not always linked to what the Bank of England are doing. So you may lose out on some savings you may get with a tracker should the Bank of England cut its base rate.
A tracker mortgage will follow the changes of the Bank of England Base Rate. Therefore you tend to get a lower rate compared to a fixed rate or flexible mortgage. The tracker mortgage will be effected by current economic conditions. Your payments will drop if the base rate drops, but it will rise if the bank rate rises.
Who should have a tracker mortgage?
Tracker mortgages are for borrowers looking for cheap initial payments and can take the risk that their payments could increase at a later date.
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