Mortgages · Tracker
A rate that moves with the Bank of England base rate.
A tracker mortgage sets your interest rate at a fixed margin above (occasionally below) the Bank of England base rate — for example, 'base rate plus 0.75%' — and moves automatically whenever the base rate changes. Your payment can go up or down during the tracker period.
Tracker vs. fixed — the core difference
With a fixed rate, your payment is certain but you don’t benefit if rates fall during the fixed period. With a tracker, your payment moves directly with the Bank of England base rate — if it falls, your payment falls; if it rises, so does your payment, usually within a month of the change. Some tracker deals include a collar, a minimum rate below which it won’t drop further.
Trackers can run for a set period (e.g. 2 years) or, less commonly now, for the life of the mortgage. The right choice depends on your appetite for payment variability and your view — or your adviser’s understanding of market expectations — on where rates are likely headed, though nobody can predict this with certainty.
Who this is for
- Comfortable with payments that can rise or fall
- Expecting interest rates to fall during your term
- Wanting to benefit immediately if rates drop
- Able to absorb higher payments if rates rise
- Comparing against the certainty of a fixed rate
- Considering a lifetime tracker with no fixed end date
How it works
Understand the trade-off
Tracker rates move with the base rate — we'll make sure you understand what that means for your budget in both directions.
Compare against fixed rates
Sometimes trackers start lower than fixed rates, sometimes higher — it depends on market expectations at the time.
Lender and rate matching
Margins above base rate, any collar (minimum rate) and early repayment terms all vary by lender.
Application to completion
Your adviser manages the case through to your new rate starting.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other loans secured upon it.