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NatWest variable rate mortgage or a Tracker mortgage?

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Written on: 11.01.2010 [02:47]
Topic creator
Posts: 8
My wife and I would like to get a mortgage, about 70% mortgage, but we are not sure which one to go for. I ask now, because the bank has offered us both but with all the different numbers they threw at me I really don’t see the difference. Which is better, a NatWest variable rate mortgage or a tracker mortgage?
Written on: 12.01.2010 [17:08]
Posts: 5
Well one of the main characteristics that differs between the two is that even though the tracker mortgage is a type of variable rate mortgage, it has to follow the Bank of England base rate at some percentage. Ie whenever it rises your rate will rise also and when it falls your rate will follow. However the normal standard variable rate doesn’t necessarily have to fall when the Bank of England base rate does. Therefore although it may increase when the rates go up, it doesn’t have to come back down meaning your rate could bne much higher than others. I would say a lifetime tracker is usually the best option but finding a good rate on one can prove difficult. My advice try and get a fixed rate for a couple of years while the rate is low then when it finishes go for a tracker. But seriously do some more research into it.
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