A tracker mortgage has an interest rate which follows the Bank of England’s base rate which in turn means that monthly repayments go up when the base rate goes up, and go down when the base rate goes down, and it seems that these types of mortgages are growing in popularity among borrowers at present, many people expecting interest rates to continue to drop as governments take steps to avoid an economic downturn.

According to Moneysupermarket, these tracker deals do offer good value to borrowers, however, there is an element of risk involved, and thus only people who are not too concerned about affordability should consider taking out a tracker-rate mortgage, other being perhaps better to go with fixed rate mortgages.

According to Louise Cuming, head of mortgages at Moneysupermarket, there are currently 24% of people on tracker mortgages - the highest level since 2005.

Earlier this week, Bank of England Deputy Governor, Rachel Lomax, warned of slowing growth and rapidly rising inflation in a sign that interest rates will come down slowly and not as fast as some predict or want.