There is certainly a lot of heated debate regarding advantages and disadvantages of lifetime tracker mortgages. If you're not familiar with this term, it is quite simple. A lifetime tracker mortgage is a kind of mortgage that is secured by means of the value of a home. This value must stay within a fixed percentage of the cost of borrowing. Although it may sound tempting, the main disadvantage of a lifetime tracker mortgage is that it does not offer a fixed interest rate.
Therefore, if the Bank of England decides to suddenly raise interest rates, so will your monthly payments of the lifetime tracker mortgage. This is the main difference between a lifetime tracker mortgage and a fixed rate one.