Discounted Tracker Rate Mortgage
|Discounted Tracker Rate Mortgage||
This is a variable rate mortgage that is discounted from the Bank of England's base rate. It is usually discounted by a set percentage but will increase / decrease in line with the Bank of England's base rate.
For Example: If the Base Rate is 2% and the discount is 0.5%, the actual rate will be 1.5%. If the base rate increases to 3%, the actual rate will be 2.5%.
The discounted rate is normally for a set period of time and there are usually early repayment charges that will be charged if the loan is repaid within the discounted period.