Tracker rates vs fixed rates

Now this is a good one.  The fixation in the media has all been focussed on Fixed Rate Mortgages, which basically just means a fixed loan repayment rate.  Interestingly enough some of the fixed rates are currently coming in at a higher rate of interest to pay back to another option which is a Tracker Rate Mortgage.

Why it might be worth looking at a Tracker Rate mortgage?

Although Trackers Rate Mortgages work with the BoE (Bank of England interest rate) …so if you think when when they are up, they are up

When they are down the price goes down

And when they were only halfway up, they were neither up nor down…

In short in my nursery rhyme ramblings, it basically means the tracker rate works with the BoE base rate of interest so if they hike up the price you pay back more interest on your loan if it goes down you pay less.  Unlike a fixed mortgage you have not got a secure repayment price locked in.  You are riding the wave of the BoE.  Some people see this as a risk, but in truth, at present some of the deals you can get with lenders are at a better rate of interest than being locked into a long-term fixed.

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Article written:  January 17th, 2023

Please be aware the details of this article are appropriate from the time it was written, therefore any information given after this date may have changed.

Be aware that if you are unable to keep up your mortgage repayments you may lose your home.  We are professional mortgage brokers with a joint knowledge of 75 years.  Our advice is free, so if you have any mortgage-related questions feel free to drop us a line at:

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