The best tracker mortgage deals are those that track the Bank of England interest rate or 'base rate'. There are other types such as a LIBOR tracker which stands for London Interbank Offered Rate.
They are not to be confused with discounted mortgage rates. These types of tracker mortgages have a rate which is dicounted at a certain level below the lenders' standard variable rate. The lender may decide to increase this rate even if the bank base rate is static. Conversely they do not have to pass on any cuts in the bank of England rate.
Tracker mortgages are also not to be confused with variable mortgages. If you are on the banks standard variable rate you are sunject to any changes (up or down) they make.
Finally, it is important to understand that the cheapest tracker mortgage deals are not always those with the lowest rates. The lowest mortgage rates often have the highest fees lurking in the background!
For more advice on the best tracker deals available on the market today, contact us.