The devil is in the detail; Trackers seem to be the answer for customers looking for a good deal on their mortgage. But they are not always as simple as they seem.

Financial Adviser, October, 2002

John Gill

As ever-MORE savvy homebuyers trawl the market for the best deals, tracker mortgages which promise to mirror any changes in the base rate are attracting an increasing proportion of business.

Customers are lured by the prospect of benefiting instantly from any drop in interest rates without having to wait for their lender to pass on the cuts. A tracker offers borrowers the assurance that it is not the lender who controls the rate on their mortgage, but the Bank of England.

But customers may want to take a close look at the small print before choosing a tracker mortgage, or they may later discover that they are not getting quite the deal they expected.

First, it is important that customers are aware of which interest rate is...

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