Tracker mortgages offer 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 or in some cases below the benchmark rate.
There are usually 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.
Interest rates can go up as well as down. When it rises sharply your payments may increase substantially.
Who will own my home if I take out Equity Release? – With a lifetime mortgage you will retain ownership of your home, however with a home reversionary plan the lender will own your home. Mortgages Leicester can give you friendly and helpful advice