Tracker mortgages

Santander announces new tracker mortgages

Santander has announced details of additions to its range of mortgages though some of the best deals are only available to existing customers.
A guide to tracker mortgages

Tracker mortgages have given the best mortgage deals over the last two years but what is the outlook for them at a time of heightened concern about when the Bank of England will raise interest rates?

Friday, 20 January 2006 12:00

A tracker mortgage is a loan secured against a property where the interest charged is guaranteed to maintain a set relationship with, or "track", Bank of England base rate.

This will typically be cheaper than a capped, flexible, or fixed-rate mortgage - but while the cost of a tracker mortgage will fall if interest rates fall, it does not protect the mortgage-holder against rises in interest rates.