Base Rate Tracker Mortgage

In the past lenders have been accused of delaying rate cuts, whilst swiftly implementing rate rises;also, not passing on the full interest rate cuts to borrowers, whilst raising rates by slightly more than rate rises.  

The government, having it's finger on the pulse of popular opinion, tried to enforce fairness in the market with the introduction of CAT Standard Mortgages. CAT stands for Charges, Access, and Terms, meaning low charges, easy access, and fair terms.

As usual, this intervention from the great and the good, spawned a clutch of lenders happy to please, and offering the new CAT standard loans. Borrowers largely ignored the CAT Standard mortgages in favour of market competitive deals, and the holders of these type of loans are as rare a sight as an estate agent on a bike.

What did evolve from these shunned deals however was Tracker Mortgages

They do exactly what it says on the tin. Track the bank of England Base Rate.

Unusually, they will track the rate minus a certain percentage, often - 0.1%, more usually they will track the rate plus a certain percentage, often 0.25 - 0.5%. 

The tracker deal may run for the term of the mortgage, or more usually for a stated period.