tracker mortgages

A lender who offers trackers rates is issuing a guarantee that the rate applied to the loan will stay within a percentage of the ECB (link to ECB Rate) rate.

Typically a reduction of .4% for a first time buyer and at least 1% for those borrowing less than 60% of the value of the house used to apply, however most lender have taken this product off the market or increased the rates charged.

The margin applied to this rate will vary from lender to lender. Also taken into consideration is the amount borrowed verses property value or Loan to Value.