Please explain what a lifetime tracker mortgage is?
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%.
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