What is a Tracker rate with no early repayment charges? This is tracker rate that allows you to pay off a Mortgage at anytime with no charges for paying it off early partially or in full..A Tracker rate will track the Bank of England Base Rate.Lenders will have margin above the base rate. For example if the Base Rate is 3% and the lender tracker rate is 0.75% above the base rate, the tracker rate would be 3.75%. So, if he base rate went up to 3.25%( using the example above, the tracker rate would change to 4%…

Tracker Rate No Early Repayment Charges.

If you are looking for a Tracker rate with no early repayment penalties, we can help you. Currently( at time of writing this post) Fixed Interest rates have been the highest they have been in years. Some People are looking at their options and are looking for advice on what else is available?

A Tracker rate as I explained above, tracks the Bank of England Base rate, so can move up and down, depending on what the Bank of England decide when they meet to set rate. The meet eight times a year or roughly every 6 weeks to determine if the base rate should go up, remain the same or go down.

We have access to lenders that will offer rates that will track the Bank of England base rate but crucially will not tie you in to any long term deals. So, you are free to pay off your Mortgage at anytime, overpay without limit or switch to fixed rate wit no penalties.

Why Would You Consider a Tracker Rate with No Penalties?

There are several; reasons why you would consider a tracker with no early repayment penalties.. The first is flexibility. a tracker with no penalties, keeps your options open, especially if you are not sure of your long term plans

Maybe you only need a short term solution, as you maybe in your in the position to clear the Mortgage sooner rather than later or pay of a sizable chunk the Mortgage ? A Tracker rate with no early repayment charges gives you that option.

Another reason maybe down to hedging your bets? Currently Fixed rates a good bit higher than tracker rates available on the Market. It really comes down to your attitude to risk, a Tracker rate could rise at anytime, albeit from a lower starting point at the moment. You may wish to consider a tracker rate and hope that any base rate rises  would still leave you on a lower rate than current fixed rates?

However as I have said, we have access to lenders that offer lower rates for trackers( at time of writing this post) than any fixed rate currently on the market. The added safety net is there are no early redemption penalties on these tracker deals, you can switch to fixed rate at anytime.

Are Fixed Rates a Better Option?

If you want the certainty of knowing what your Mortgage Payment will be for the next 2.3.5 or 10 years etc. then a Fixed rate is probably the right option for you. While the rate maybe higher that a tracker rate, you can budget each month for your Mortgage payment regardless of what the Bank of England does with the base rate.

The downside is currently( at time of writing this post, fixed rates are higher than tracker rates. However if want certainty for fixed period of time, them fixed rates might be your best option. I can of course help and advise on the best solution based on your needs and circumstances.

Conclusion.

If you would like to know more about Tracker Rates with no early redemption charges, then get in touch with me. I will be more than happy to help and advise you. Tracker rates will not be for everybody, it will depend on your circumstances, attitude to risk and what you are looking to do.

Give me call now on the number or above or use the call me back option on the right.

Michael Markey CeMap, CeRERMortgage Adviser