The mortgage rates are dependant upon the base rate set by the bank of England these might change on a monthly basis. You would find that some lender may not pass over the low rates to the customer if they do not feel the need too. With a tracker mortgage you bypass the lender and pay your mortgage according to the base rate set.

The rate the home buyer would pay is smaller than a standard variable rate which the lenders would give under fixed and discounted mortgages.

People who took out a tracker mortgage 6 years ago have benefited from taking out a tracker mortgage as it has since fallen to the 4% rate.

If the base rate was to go high then you would find yourself paying a lot more than those who have a fixed rate mortgage.

Planning finances and how much your monthly payment would be becomes difficult as it's out of your hands.

Always read the small print as many lenders may offer to only charge you 1% above the base rate but there might be hidden clauses which might state that in special conditions they could inflate the rate.

There are variations to the tracker option which is:

Lifetime tracker - This option allows you to have the mortgage tracked through the entire mortgage period.

Set period tracker - This is when the mortgage will only be tracked for a period of time set between you and the lender.

Commitment trackers - These would be the lenders committing themselves to you by stating that the difference between the base rate and the rate charged would not exceed a certain percentage.

There may be redemption penalties within the mortgage agreement which you would have to pay if you were to switch lenders.

To enquire about a self certification mortgage fill in our quick mortgage form and an advisor will call you back.