[Blog Main Page]  [Login]  [RSS]  [Forum]                           

Register

There are several different types of methods for interest to be charged on mortgages. Tracker mortgages have a variable interest rate that moves roughly in line with the Bank of England Base Rate (BoEBR). Another popular type of interest rate is a fixed rate which does not move in line with the base rate.

The interest rates on tracker rate mortgages are quoted as a fixed percentage above the base rate and will normally exist for a short period, although it can be attached to the tracker rate mortgage for its entire term.

Once the tracker period expires the interest rate will convert to the lender’s Standard Variable Rate (SVR). A typical example would be tracker rate mortgages that are quotes as having an interest rate of BoEBR+2% for three years.

(more…)