This was due mainly to the fact that everyone wants
their mortgage linked to a rate that is reducing.
In the lest 5 years the bank base rate has been on a
steady decline and other than a couple of minor rises
late last year and early this year is still at levels
not seen in thirty years.
In addition historically lenders have been slow to
change their mortgage variable rate and as a lot of
mortgage customers are either on standard variable rate
or a discounted mortgage off the variable rate, being
tied to a rate that is slow to change can be financially
costly.
Much like a variable rate discount mortgage all a base
rate tracker is, is a mortgage that tracks the fall and
rise of the bank of England base rate. Some base rate
trackers have a built in discount and some are just a
set percentage or part thereof over the banks base rate.
|
|
|
|
|
