Tracker Mortgages
A tracker mortgage is a variable rate mortgage where the interest 'tracks' an index, usually bank base rate or LIBOR (London Interbank Offered Rate ) which is the rate at which banks lend to each other. LIBOR is set by market forces. It also anticipates future rates and as a result is usually more volatile than base rate. Tracker mortgages are designed to move as the index moves, usually after a period of, say, 15 days.
All variable rate mortgages are, of course, influenced by general interest rate changes but tracker mortgages have an automatic link built in.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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