Please explain what a lifetime tracker mortgage is?

Asked by rothgebzhuy

1 Answer

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Answered by Paul Skinner, IFA in Odiham, HAMPSHIRE
A tracker mortgage is a variable rate mortgage, and the interest charged is related to the Bank of England base rate (typically), currently 0.5%. A lifetime tracker, will tracker the base rate at the same margin for the term of mortgage. For instance, if the "margin" is 3%, then you would currently pay 3.5%. The margin would remain the same for the term of the mortgage, but the actual rate you would pay would change whenever the base rate changes. So, if the base rate rose to 5% (as it was before the credit crunch), you would end up paying 8%.

Regards

Paul Skinner
PKS - Mortgage & Insurance Experts
T: 03332 407040
E: paul.skinner@pks.org.uk | 10.08.12 @ 11:19
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$commenter.renderDisplayableName() — {comment} | 09.22.17 @ 08:15
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Answered by

Paul Skinner
Paul Skinner, IFA in Odiham, HAMPSHIRE

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