What is a tracker mortgage?

This is a Personal Finance Friday question from several of our Financial Planning clients.
 
A tracker mortgage (or tracker variable rate mortgage) is a mortgage where the interest rate is tied to a tracked rate, such as the E.C.B. rate plus a set amount.
 
If the E.C.B rate is 2%, and your set amount is +1%, you’ll pay 3% interest on your mortgage. Simple!
 
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