Your home may be repossessed if you do not keep up repayments on your mortgage.
We provide an independent comparison service free of charge but we may receive a commission from some of the companies we refer you to. These are indicated with purple buttons.
Tracker mortgages follow changes in the base rate, with a constant differential being maintained between the base rate and the mortgage interest rate.
A lender's standard variable rate will typically be around 1.5% above the base rate. In addition, a fall in the base rate will not always necessarily be followed by an equivalent fall in the standard variable rate. However, tracker mortgages tend to have a smaller difference above the base rate, down to around 0.75% or even lower, and they are guaranteed to rise and fall with the base rate.
This means if the base rate rises your monthly payments will rise. If the base rate falls your monthly payments will fall. So if you are looking to find the cheapest tracker mortgage you have to keep an eye on the base rate and be prepared to pay more if it starts to increase!
The period for which the tracker mortgage applies may be for a fixed term only, say 5 years, after which time the interest rate will revert to the lender's standard variable rate. Tracker mortgage UK deals are also available that persist for the full term of the mortgage.
Some mortgage lenders will offer different tracker rates depending on the amount you are borrowing as a percentage of the value of your home (LTV - Loan to Value). For example, 0.75% above the base rate may be offered for a mortgage with an LTV of 90%. Alternatively, 1.5% above the base rate may be offered for a mortgage with an LTV of 95%. As a rule the best tracker mortgage rates are only available to low LTV mortgages.
Rates may be offered in conjunction with a discount offer. For example, 0.5% above the base rate may be offered for the first 2 years, rising to 0.75% above the base rate after the discount period.
If you are keen on a tracker mortgage it is vital to compare the best deals on the market so you end up with the cheapest and best tracker mortgage for your circumstances. If you're looking to remortgage your property, there are also tracker remortgage products available.
You can compare the best tracker mortgages using our tracker mortgage comparison table.
A mortgage is a path to buying the home you want but it's also likely to be the biggest financial commitment you ever make. So, finding the best rates & the most suitable mortgage package is vital, here's how.
What is the new Right to Buy scheme?
How to get on the property ladder with no deposit
What does divorce mean for your mortgage?
How you can pay off your mortgage early & save thousands
8 ridiculous rules that can stop you getting a mortgage
Whether you have recently unearthed a mine of coppers from the back of your sofa or have been saving loose change for years, cashing it in can give your wallet a welcome boost. Find out the best way to switch your pennies for pounds.
Driving someone else's car is a big responsibility so making sure you've got the right insurance is vital, but can you even insure a car if you're not the registered keeper? Here's what you need to know.