Tracker Morgage Advice

Leedslad8t6

Hello all,

My mother is looking to get out a small loan to repay a debt she owes me so that I may buy my own house.

I have recently discovered she chose a tracker mortgage within the last 9 months as her fixed rate came to an end (it was something silly like 7%)

I would like to make sure if interest rates rise my Mother is able to pay both the tracker mortgage and this small loan (roughly £4,000).

Neither of us are very clued up financially, I would like to know what questions my Mother has to ask her bank in order to be able plot her repayments against possible future interest rate hikes.

So far i have come up with...

The length of the tracker mortgage.

The monthly repayments as they stand now.

The interest rate being charged now.

Finally how might I use the figures to plot future repayments if say the interest base rate hikes by x%


Any help is very much appreciated!


Regards

Daniel

GMS

Did your mother choose a tracker rate or automatically go on to it following the fixed term end?

If she has concerns over future rate rises then a fixed rate should have been selected. Check to see if she can change to a fixed rate without penalties.

Leedslad8t6

I didn't think to ask that, I will see what she says.

Am I correct in thinking if it has done so automatically that there would not be a tie in period for the *tracker rate, bar a possible fee to fix?

D