London Mortgage Advice

With a base rate tracker mortgage the rate of interest is tied to the base rate set by the Bank of England.

It is really a discount mortgage, see above, provided in a different format. The rate you pay is given as a percentage margin that can be above or even below the Bank of England base rate and this margin is usually fixed for a period, anything from 6 months to five years.

At the end of the tracker rate period you will revert to the standard variable rate or another rate that that will last for the remainder of the mortgage term.

Usually there will be a penalty charge covering the tracker rate period during which you will pay a charge for redeeming the loan.

There are some tracker rate deals without redemption penalties.

At the end of a tracker rate term, assuming there is no tie in period or penalty for going elsewhere it may be beneficial to re-mortgage to another lender.

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London Mortgage Advice Ltd is authorized and regulated by the Financial Services Authority for residential mortgages and non investment insurance business. As we give independent advice we can offer you either a 'no fee' option where we are paid by the lender or you can pay our total fees. Typically this will be anywhere between 0.3% and 1% of the mortgage amount (based on a loan of £100,000 this would result in a fee of between £300 and £1000). In this instance we will rebate to you any commission we receive from the lender. THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.