Can tracker mortgages be repayment mortgages?

powerwin

Hi All

Can tracker mortgages be repayment mortgages?

If so, given that the interest rate will always be variable, how can it be guaranteed that the mortgage will be repaid at the end of the term?

Many thanks

DVardysShadow

Don't get thrown by the tracker bit. Essentially, it is a variable rate mortgage, which can of course be repayment. Repayments are set according to the amount outstanding and the interest rate at the time the rate changes to ensure that the repayments will be correct to clear the loan at the end of the term.

Gorgeous_George

Because the repayments rise and fall with interest rates fluctuations.

GG

Wutang_2

powerwin wrote: »

Hi All

Can tracker mortgages be repayment mortgages?

If so, given that the interest rate will always be variable, how can it be guaranteed that the mortgage will be repaid at the end of the term?

Many thanks

???

You respond to plenty of mortgage enquiries and still ask questions like this.

I notice also you ask what an offset is and then make a seperate statement regarding offset mortgages (I have quoted your words on another thread).

Strange

Joe_Bloggs

It would be wrong to criticise an enquiring mind. I do wonder whether a 'bot' could dig up questions that were asked and regurgitate the answers that were given to other forum members.
J_B.

powerwin

Wutang wrote: »

???

You respond to plenty of mortgage enquiries and still ask questions like this.

I notice also you ask what an offset is and then make a seperate statement regarding offset mortgages (I have quoted your words on another thread).

Strange

Hi Wutang

When I reply to posts I often add a disclaimer saying I'm not an expert, but I am currently learning a lot about mortgages. Sometimes I will post a question just to get input from others, even if I am fairly sure of the answer myself.

In the case of whether a tracker can be a repayment mortgage, I was having slight comprehension difficulty over how it worked for the mortgage to be repayment and be repaid within a given time. Thanks to my question, I now feel I have the understanding that the money you pay on your repayment tracker mortgage goes on two different things, one being repayment of what you have borrowed, the other being payment of the interest on the mortgage balance you have left, where the interest rate is variable, hence making your overall payment variable. I can now see that the repayment amount element can be set to a schedule set by the financial institution. I was having trouble seeing how the repayment element could be "made regular", but now I get it.

I did notice you quoted me on another thread, and I'm glad you're paying attention. I do like joining in the community as you have noticed.

Rgds