Tracker Mortgage

This is a mortgage that is set at a fixed percentage or ‘margin’ above the ECB rate.

For example, it could be set at the ECB rate plus one percentage point. So, if the ECB rate rises by a percentage point, so does your rate.

It will also ‘track’ the ECB rate when this rate goes down.

In the current climate, they are practically impossible to get and banks and building societies are actively trying to get people to switch from them because they are losing money on them.

The advice is that if you have one, keep it!