One of my properties have variable interest rate. For the first year, it was alrigt because nothing much had changed. But this year alone have made my payments change (+/-)75 dollars. If the property is a rental, it's a pain. It's not like I can also raise and lower my tenants rent as changes happens. If you have variable rates, then Tracker Mortgages can help with keeping up with the changes in rates. Here's why you should visit this site if you're thinking of buying a property:
The tracker mortgage differs from the Standard Variable Rate (STV) in that the interest rate is directly tied to the Bank of England base rate, and does not follow the lender’s rate, which would always be higher. The incentive, particularly to the first time buyer, is that the margin is set to a maximum of only 1% or 2% above the Bank of England base rate. And in some extraordinary cases it may even be set below the rate. This means that repayments during the life of the tracker offer, (usually from 2 to 5 years), are invariably cheaper than with other standard mortgages.