Based Rate Tracker

During a set period the interest rate tracks the Bank of England’s base rate. The interest rate is expressed as base rate + x%. The monthly repayments change every time the Bank of England changes interest rates. Some are ‘Stepped Trackers’ where the margin between base rate and SVR changes at the mortgage anniversary.
The advantage of a fixed rate is that you benefit immediately from any reduction in interest rates by the Bank of England. Usually repayments are lower than an SVR mortgage. The disadvantage is that you have no certainty over monthly repayments and you suffer immediately from any increase in interest rates. The lender may charge a one-off arrangement fee. There are early redemption penalties should you wish to redeem the mortgage during a period set by the lender.