With several Bank of England base rate decreases being introduced recently and finance experts predicting further decreases, more people are considering taking out tracker mortgages.
There are pros and cons to both tracker and fixed mortgages, and a tracker mortgage might not be suitable for everyone. To help decide which type of mortgage suits your needs, you can use best buy tables to compare your options.
Fixed vs tracker mortgages: key differences
A fixed mortgage is one where the monthly payment remains constant for the duration of the agreed term. With a tracker mortgage, monthly payments can fluctuate, as the interest rate is linked to the Bank of England’s base rate. For example, a tracker mortgage might be based on the BoE base rate plus 1%, so if the base rate increases or decreases by 0.25%, the mortgage payments would also change accordingly.
How best buy tables present mortgage rate comparisons
A best buy table will provide you with all the important details about different mortgage deals, allowing you to make a comprehensive comparison. For example, best buy tables include product fees, any incentives, monthly repayment amounts and the overall cost of each mortgage deal.
The tables also show the maximum Loan-to-Value ratio, so you can see which deals you will qualify for and any early repayment charges.
