17th June 2013
Whilst conducting your market research for your mortgage you will have come across tracker mortgages, but most probably not known what they are.
Perhaps you think that you don’t need to know because the less options available then the easier your decision. However with this attitude, you could be on the verge of missing out on the mortgage product that could work perfectly for you.
Tracker Mortgages Peterborough
Tracker mortgages follow the base rate of interest for the Bank of England. For you, your rate will change when and if there is a fluctuation in the Bank of England’s interest rate. The main risk of having a tracker mortgage in Peterborough is that if the Base Rate rises, so will your repayments. Some Peterborough based lenders may offer you a capped version of a tracker mortgage so that if the Base Rate exceeds a precise level, your repayments will not increase.
With this is mind, if the Base Rate falls then so will the interest rate on your Peterborough mortgage. In consequence, you can take advantage of this and make a greater repayment during this period which will reduce the overall total that you need to repay, at a faster rate.
If you are thinking that you may like to obtain a Tracker mortgage in Peterborough? Here are a few more pointers to help you decide:
- The Bank of England’s Base Rate is decided upon on the first Thursday of the month. To decide, the bank assesses the state of the economy and the overall level of borrowing in the country and then makes a decision.
- The majority of Peterborough mortgage lenders will allow you to make a premature change from your fixed rate contract to a tracker. The change in your contract may result in an early repayment charge.
- With a tracker mortgage, there is no catch. However, the nature of the interest rates may mean that it becomes more difficult to budget across the month due to your not knowing how the Base Rate is going to adapt and thus how much you might be able to pay – whether that’s the bare minimum or a higher sum.
- You may prefer relying on the Bank of England’s Base Rate as opposed to an individual lender’s rates because it could be easier to monitor the changes in interest rates.
If you’re feeling intrigued, or would simply like some more information, then give The Mortgage Broker Protection Ltd a call. Their experienced and knowledgeable brokers will be able to advise you on how a tracker mortgage would work for you so that you can make an informed decision. Advice from consultants at The Mortgage Broker Protection Ltd is without obligation which means that you have nothing to lose by calling.
Upon application a fee of up to £495 will be payable (typically £195)Tags: mortgage brokers peterborough, peterborough mortgages, Peterborough tracker mortgages, Tracker mortgages peterborough