A tracker mortgage rate moves in line with the Bank of England base rate, so your monthly payments could go up or down (within one month) depending on how the base rate moves.

Advantages of Tracker Rate Mortgages

• The advantages of a Tracker Rate mortgage, is that it is usually little cheaper than a Standard Variable Rate mortgage.
• one will benefit from a downward movement of the Base Rate, (even if the lender does not decrease their own standard variable rate).
• You can have a lifetime tracker which tracks the Base Rate for the life of the mortgage - this is usually a certain percentage above Base Rate.

Disadvantages of Tracker Rate Mortgages

• There is no protection against an increase in the Base Rate.
• There is no 'cap' on how much one could be charged if rates where to continue rising.

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