The tracker mortgage is a very popular mortgage product in the UK and is usually based around the Bank of England's base-rate.
Once a month, the Bank of England Monetary Policy Committee (MPC) meets and decides on an interest base-rate for the following month. If you have a tracker mortgage, it is this meeting that will decide your interest rate; lenders will set there rates at a fixed margin above the base rate, typically within a 1% window above the Bank of England's "repo" rate.
This type of mortgage is a good idea when the Bank of England's repo rate is stable or falling. However, with each interest rate rise, there is a corresponding increase in your monthly repayment. This means a rising base-rate can have a significant impact on your monthly disposable income.
At time of writing (17/02/2009), the current base rate set by the MPC is 0.5%.
Solicitor Fees
The Financial Services Authority does not regulate conveyancing activities.
In our experience £100's of pounds could be saved on solicitors charges for conveyancing all around the country.
As part of our processing of individual mortgage applications we can find very competitive solicitors (regardless of area) who are experienced in the property market - all at no extra cost.
Interest rates may be subject to terms and conditions. The Contents shown on this website are for information purposes only and must not be taken as 'Advice' or a 'Best Buy' option. All costs in relation to a mortgage will be fully explained and a KFI (Key Facts Illustration) provided upon request.
|
