What's the difference between a fixed rate and a tracker rate?

Fixed rate mortgages

If you want the security of paying the same amount every month, then our fixed rate mortgage may be a good choice for you. Your interest rate is fixed for an agreed period of time, usually two or five years. Repayments remain the same during this time, regardless of other interest rate rises or falls and at the end of your fixed rate period, your interest rate will usually go back to the Standard Variable Rate (The interest rate that you will pay at the end of any fixed/tracker period. The SVR of each lender is set by that lender and they can vary it at any time. This rate will normally change when the Bank of England's base lending rate changes).

Tracker rate mortgages

The interest rate is linked to the Bank of England Bank Base Rate (this is based on the base rate set by the Bank of England) for a certain period of time, usually two, three or five years. If that rate falls, so will your mortgage payments. And if your interest rate goes up, your monthly mortgage payment will rise too. At the end of the tracker period, your interest rate will usually go back to the Standard Variable Rate.

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Your home may be repossessed if you do not keep up repayments on your mortgage