Tracker mortgages

Base rate tracker mortgages have an interest rate that is at a fixed margin above or below the bank base rate, for a specified term, and move up and down when the bank base rate changes. Typically a tracker mortgage will track the Bank of England’s base rate (the ‘repo’ rate) but there are some that track LIBOR (London Interbank Offered Rate). The majority of tracker mortgages track the base rate for 2, 3 or 5 years but lifetime trackers are also becoming increasingly popular.