Tracker mortgage

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A Tracker mortgage is directly linked to the Bank of England Base Rate (BBR). Rates could be the same as or a specific amount above or below the BBR – the key point is that they are directly linked to the BBR.

If a mortgage is a “2 year Base Rate + 2.25%” it means the interest rate will be the BBR plus 2.25% for two years. For example, if the BBR was 3.0% then 3.0% + 2.25% = 5.25%.