The tracker mortgage shadows the movement of the Bank of England Base Rate. Tending to offer a low rate compared to say a fixed rate or flexible mortgage, the tracker mortgage benefits from reflecting current economic conditions. Your payments will drop if the base rate drops, but will also rise if it rises.
Tracker mortgages are often more suited to borrowers who are looking for cheap initial payments and who can also take the risk that their payments could increase at a later date. Having a good, solid joint income will help ensure this is the right option for you. Also, some savings set aside for if the tracker mortgage rate rises will be beneficial to you. If your income doesn't increase then you will need to make sure you can pay your mortgage for that particular month(s) if the rate rises.
Whenever you are taking out a loan, be sure to read the small print. The interest rate will be set at a certain amount below base rate for 2 years. Be careful though, as your lender may reserve the right to review the situation should the base rate fall too low. You may also find that they specify a minimum rate that you will have to pay if the base rate plunges below expectations, in order to protect them from you ending up paying a very low mortgage rate. At the end of the day, these small print clauses then defeat the whole point of the tracker mortgage, so make sure you understand everything before agreeing.
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