Discount/Tracker Mortgages

Tracker and discount mortgages are based on variable interest rates and will be affected by changes in the Bank of England base rate. An increase in the Bank of England base rate is likely to increase your interest rate and subsequently, your monthly repayment.  However, if the Bank of England rate goes down, your repayment is likely to follow suit.

Discount Mortgages offer a fixed discount from the lenders standard variable rate for a fixed term. Lenders are not required to follow the Bank of England base rate and each lender will set their own standard variable rate

Tracker Mortgages follow the Bank of England base rate and will fluctuate with any changes made to it.

These mortgages often have smaller product fees, interest rates and may not have early payment penalties, but they are a gamble.