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help please what is tracker?

we have always fixed our mortage & we have 8 months before we come out of a 5y fixed 5.24, fixed just before it went down....
I don't understand tracker 2 years at 2.24% will it stay at this rate for the whole 2 ys? or will it go up if rates change?

Comments

  • Linked to the Bank of England rate. Will move up and down as and when their rate moves.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    It will change in line with either Bank Base Rate or Libor.

    Probably Bank Base Rate.

    If the rate rises by 0.5% so will you rate.

    It wil 'track' what the base rate does.

    If you are not prepared to gamble with rising payments you should look at a fixed rate.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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