UK Mortgages - Base Rate Tracker Mortgage Solutions

Base rate Trackers are agreed for a fixed term period stipulated between both borrower and lender. Base rate Tracker mortgages can also be agreed for an entire payment term.

Base Rate Tracker Mortgage Explanation

Your provider will base the percentage value on your properties LTV (Loan to Value)*. If your property has a low LTV rate it will most likely receive a lower base rate tracker interest rate, in keeping with that philosophy a property with a high LTV will most achieve a higher interest rate differential.

*Loan To Value (LTV)is the % difference between the value of the property against the mortgage offered.

Base rate tracker mortgage downsides.

• If you try to leave the mortgage scheme early you will be charged what is known as an early redemption penalty.
  
• Redemption penalties still apply after the BRT fixed period is over, whenthe lenders SVR comes into force, this is known as an overhanging redemption penalty.
  
• Base rate tracker mortgages are difficult for budget management, as the Bank of England's base rate goes up & down