This offers you a Variable Rate Mortgage with an interest rate that rises and falls in line with a specific benchmark, usually the Bank of England Base Rate. The tracker rate would be expressed as a certain percentage rate above the benchmark rate.
Plus Points: Usually there are no penalties for cancellation and for transferring to another mortgage product or to another lender (known as redemption penalty and lock-in periods), giving you the flexibility to change your mortgage type or move to a different lender.
Points to Watch: Interest rates can go up as well as down. When it rises sharply, your interest payment instalments may increase substantially.
2 standard repayment methods for Cash Back Mortgages:
