What the difference between a tracker, a fixed mortgage

What are the differences between a tracker, a variable, and a fixed mortgage?

A modern browser with JavaScript and a stable internet connection is required to view this interactive. If not, enter the total you are looking to borrow. If not, enter the total number of years you are looking to borrow over. If you have a mortgage, enter the rate for your current fixed term. For those without a mortgage, enter an interest rate from another source, such as a bank's mortgage rate calculator. Your payments may change at this rate because you provided information on your monthly payments wouldn't be enough to pay off your mortgage within the number of years given.

If you're up to date with payments, you're able to switch to a new fixed-rate mortgage without a new affordability test, because of an agreement between the Treasury, the Treasury and regulators.

Customers must contact their lender as soon as they realise they are going to struggle to make repayments - the earlier the better. Trained and experienced staff must be on hand to help.

What should a lender do?

Any arrangement you come to, the FCA points out, will affect your credit file - affecting your ability to borrow money in the future, as well as any missed payments.

Your lender might give you a chance to extend the term of the mortgage or let you pay just the interest for a period of time.

There are lots of stages before a lender can take such action, and the whole process takes about two years.