Which statement best describes the difference between a fixed-rate mortgage and a tracker mortgage?

Which statement best describes the difference between a fixed-rate mortgage and a tracker mortgage?

• A. Tracker maintains the same rate for the fixed period.
• B. Fixed-rate keeps the same rate for a defined period; tracker follows a reference rate with a margin.
• C. Tracker applies only to equity release products.
• D. Fixed-rate changes with market rates; tracker remains constant.

Answer: (B)