Base Rate Tracker

The Deal

Base rate tracker mortgages unlike ordinary standard variable rate mortgages, 'track' or follow the bank base rate set by the Bank of England. This means that all bank rate cuts are automatically passed on to the borrower. Lenders offer to link your payments to the Bank of England base rate for a set period of time.

Advantages:

• Generally, the rate charged will be lower than the variable rate applicable under a standard mortgage
• Any drop in the Bank of England base rate will be directly reflected in the monthly mortgage payments

Disadvantages:

• Any increase in the Bank of England base rate will be directly reflected in the monthly mortgage payments