A tracker rate mortgage is usually fixed at a certain percentage above or below the Bank of England base rate. It will adjust to match rate changes made by the bank.
This can mean your payments increase, if mortgage rates go up. However, it also means they will decrease if rates fall. If you are certain you can meet any increase, and are willing to gamble on a decrease, a tracker mortgage could work for you.
Some lenders offer a capped rate. That means the mortgage rate is guaranteed not to go above a certain level, no matter what happens to the base rate, but will still fall if the base rate goes down. Others may let you switch to a fixed rate mortgage if repayments get too high.
