A Tracker Re-mortgage is a relatively new form of re-mortgage offer. These mortgages were basically introduced in order to help pass on the movements within the base rate of the Bank of England (specifically downward movements) a lot more quickly to the mortgage borrowers. From time to time, mortgage lenders will react very slowly to the changes of the Base Rate or they may not even respond at all if the alteration is merely very small.The Tracker Re-mortgage has an interest rate which is set slightly higher than the Base Rate, though it is normally just under the mortgage lender’s Standard Variable Rate (SVR).

At the time when the Bank of England’s Base Rate is increased or decreased, the tracker rate re-mortgage will move as a result and the borrowers monthly payments on their mortgage will either increase or decrease, even if their mortgage lender does not alter their SVR.The benefits of these Tracker Re-mortgages are that they are considerably cheaper than the standard variable rate re-mortgage, which means that the borrower will of course benefit from each downward development of the Base Rate, even if their lender does not reduce their own SVR.