Track the base rate for the best mortgage deal!
If you’re optimistic about the prospects for interest rates over the time that the “tracker” provision will be in place, a base rate tracker mortgage might be worth pursuing. Keep in mind that with other types of adjustable mortgage, the bank may not as quickly (or at all) cut the mortgage loan rate when the base rate drops!
There are, of course, some caveats. For example, even if you are optimistic about where base rates are headed, can you afford to take the chance about being wrong and having to pay a higher mortgage payment each month if your loan rate goes up? Do you fully understand what makes the base rates move in the first place?
The most important thing in deciding about a base rate tracker mortgage is whether it is a good choice in comparison with other mortgage choices available to you. Make sure your mortgage broker manages many different types of mortgage products so that s/he will be unbiased and open to helping you decide which one is right for you.
ome people pursue base rate trackers when they are originally financing their homes, others pursue them for refinancing, and others still pursue them for loan consolidation refis. Mortgage brokers are not always unbiased when they push base rate trackers.
As we continue to build our site, we will add helpful consumer information about base rate tracker mortgages. Please check back often.
Please keep in mind that any eventual decision you make shouls be made in consultation with your financial professional, as the loan rate on your mortgage can affect your financial well being. You may benefit, for example, from loan consolidation through a base rate tracker, but only your financial professional can tell you for sure.
Here are some mortgage rates in your area, whether you are interested in pursuing a base rate tracker mortgage or a conventional mortgage.