As it suggests tracker mortgages track the bank of England base rate. It is similar to a variable rate but some times offered with a discount. These look attractive but if rates start to rise then so does your pay rate, it works both ways and can reduce in line with rates falling although lenders will put a floor on how low it will go. Some lenders also offer these deals with no early repayment charges.
FIXED RATE MORTGAGE
Lower fixed rates tend to be two or three year deals. As the term of the fix increases so does the interest rate. Lender fees for fixed rates can be high so it pays to look at all the differences in rates and the product fee added. Even if you are receiving a new rate from your current lender always check what the lenders fees are. Most of these deals allow over payment up to 10% of the balance within the fixed rate period.
VARIABLE RATE MORTGAGE
Variable rate mortgages are normally the lenders standard rates, no frills, just the standard rate. normally there are no penalties for repaying early just a small administration fee. Its still important to shop around as each lender will have a different standard variable rate.