Unlike a Standard Variable Rate mortgage, a tracker mortgage follows the Bank of England base rate absolutely.

To simply illustrate this: if the Bank Of England base rate rises by 1% then so does your mortgage rate. And if it falls by 1% then your mortgage rate drops by the full 1%.

Rates on tracker mortgages tend to hover just above the base rate. Some also have a "collar" - a minimum level below which the rate will not drop. So in the unlikely event that base rates fell to 2%, if your tracker had a "collar" of 2.5% your rate would not fall below that level.

Some trackers only run for a couple of years, but you can get "Lifetime Tracker" deals that last for the full mortgage term.

Pros: You get the full benefit of all Bank of England rate falls (subject to any "collar" restriction).

Cons: You get the full cost of all Bank of England rate increases therefore this mortgage does not guarantee the same repayment amount each month.