With many mortgage offers available it is difficult navigating your way around what’s on offer, so what is a tracker mortgage?

The interest rate on a tracker mortgage moves in line with the base rate provided by the Bank of England. It is not a fixed rate so your payments can increase of decrease with a month notice.

The tracker rate offered by your chosen lender will usually be 1% higher than the Bank of England base rate.  Say if the base rate was 5% then you would be required to pay 6%.

A tracker rate mortgage is usually set for a period of time the length of time depends on the mortgage provider you opt for. When the tracker rate expires your repayments will continue using your lenders standard variable rate.

The main advantage in this type of mortgage is if the interest rates fall the benefits are seen straight away but of course you have to remember the rates can also increase.